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متابعة

In a business combination consummated on January 1, Year 1, Wright acquired an intangible asset.

1- an acquisition cost of $5Million a fair value at December, Year1 of $6Million and a finite life of years

2- another intangible asset with an acquisition cost of $3Million and a fair value of $2Million  at December, Year1, for which a life cannot be determined. Question ,

_

What amount of intangible amortization should Wright recognize for the year ended December, Year1?

_

1- Zero

2-one Hundred Thousand

3-two Hundred Thousand

4-three Hundred Thousand

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تم إضافة السؤال من قبل mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia
تاريخ النشر: 2017/01/04
Ibrahim Reda
من قبل Ibrahim Reda , chife accounts , Hotel sea viwe Alex

one Hundred Thousand  amortization

mohamed Hakim CMA CPA Candidate
من قبل mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

 

answer is :  Number 2 ,  100,000

 

Two intangible assets were acquired at the beginning of the year. The first has a finite life and thus should be amortized;

_

the second has an indefinite life and cannot be amortized. The second asset looks like it might be impaired, but they did not ask for the impairment loss.

_

The acquisition cost of the first intangible asset was $5,000,000. That cost is amortized over the life of 50 years, for an annual amortization of $100,000.

المزيد من الأسئلة المماثلة

هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟