Question
Springer Corp. purchased some intangible assets during the year as follows: a. Patent. The company purchased a patent at a cash cost of $610,000 on
Springer Corp. purchased some intangible assets during the year as follows:
a. Patent. The company purchased a patent at a cash cost of $610,000 on January 1, 2017. The patent has an estimated useful life of 10 years.
b. Copyright. On January 1, 2017, the company purchased a copyright for $600,000 cash. It is estimated that the copyrighted item will have no value by the end of 12 years.
c. Franchise. The company obtained a franchise to make and distribute a special item. It obtained the franchise on January 1, 2017, at a cash cost of $535,000 for a 10-year period.
d. Goodwill. The company purchased another business in January 2017 for a cash lump sum of $1.1 million. Included in the purchase price was Goodwill, $863,000
What is the total amount of amortization expense that Springer will need to report on their December 31, 2017 Income Statement?
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