Question
Refer to the acquisition date data above for the combination of XR Inc and Renex. Assume that, on July 1, 2015 XRInc. issues 1,200,000 shares
Refer to the acquisition date data above for the combination of XR Inc and Renex.
Assume that, on July 1, 2015 XRInc. issues 1,200,000 shares of common stock with a $1 par value and a $18.25 market value to obtain all of Renex's outstanding common stock. In addition to the assets that Renex reports on their balance sheet, Renex also owns an internally developed patent with a fair value of $1,000,000 and a useful life of 5 years. How much amortization expense should XR Inc recognize with respect to the acquisition of Renexfor the year ending June 30, 2016?
(Hint: In 2016, the Amortization is actually "negative" amortization.)
Remaining Useful Life for Account Value @ ENE Value @ WEE Value @ W15 Renex's Assets %% Accnu nts Re ceivable nventnryr Land Buildings {net} Equi pm ent {net} , Accnunts Payable [3,301], LungTerm Hates Payable (13,313, Common Stock [51 par} [l PaidIn Capital [31560, E 1f1f14 Reve nues Expenses Fishy: Es??? E ! EEEE F]- :T E a ! H D 10,111], 3 9 ! Fa: '--' E E g igsgs E I [102ml E g!!! E lilll a E EStep by Step Solution
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