Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

image text in transcribed 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 E

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Financial Accounting Concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Mark Edmonds, Christopher Edmonds

10th Edition

126015940X, 978-1260159400

More Books

Students also viewed these Accounting questions

Question

14. Now reconcile what you answered to problem 15 with problem 13.

Answered: 1 week ago