Question
The following information concerns the intangible assets of Epstein Corporation: a. On June 30, 2013, Epstein completed the acquisition of the Johnstone Corporation for $2,480,000
The following information concerns the intangible assets of Epstein Corporation: |
a. | On June 30, 2013, Epstein completed the acquisition of the Johnstone Corporation for $2,480,000 in cash. The fair value of the net identifiable assets of Johnstone was $2,100,000. |
b. | Included in the assets purchased from Johnstone was a patent that was valued at $81,200. The remaining legal life of the patent was 12 years, but Epstein believes that the patent will only be useful for another seven years. |
c. | Epstein acquired a franchise on October 1, 2013, by paying an initial franchise fee of $208,800. The contractual life of the franchise is 9 years. |
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