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Posted by: Homeworkhelp
Price Quoted by Student: $3.5
Posted On: 2011-09-07 01:01:02
 
Question

BE 11-6 On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern.

 

ANSWER JEY BE 11-6 Amortization

 

BE 11-6 On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $4 million, patent; $3 million, developed technology; $2 million, in-process research and development; $5 million, goodwill. Lexicon's policy is to amortize intangible assets using the straight-line method, no residual value, and a five-year useful life. What is the total amount of expenses (ignoring taxes) that would appear in Lexicon's income statement for the year ended December 31 related to these items?


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