What is the total amount of amortization expense

Reference no: EM13703961

At the beginning of the year, Big Time Tires acquired 100% of the common stock of Discount Tires. The purchase price allocation included the following items: $770,000, patent; $250,000, trademark considered to have an indefinite useful life; and $5.0 million, goodwill. Big Time Tire's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a four-year service life.

What is the total amount of amortization expense that would appear in Big Time Tire's income statement for the first year related to these items?

Reference no: EM13703961

Questions Cloud

Rise in the unemployment in greece : There has not been an increase in the pay for 3 years, the benefits have been solidified, a radical increment in the VAT, and has been a rise in the unemployment in Greece (Elliott, 2010).

Expansion-compression processes in piston-cylinder devices : During some actual expansion and compression processes in piston-cylinder devices, the gases have been observed to satisfy the relationship PVn= C, where n and C are constants. Calculate the work done when a gas expands from 350 kPa and 0.03 m3 to a ..

Product remain in inventory : Seminole Company began year 2013 with 23,000 units of product in its January 1 inventory costing $15 each. It made successive purchases of its product in year 2013 as follows. The company uses a periodic inventory system. On December 31, 2013, ..

Calculate the profits of commercial and residential service : Hillview Garden Care Inc. is a lawn and garden care service. The company originally specialized in serving small residential clients but has recently started contracting for work on large apartment and office building grounds. Since Phyllis Flo..

What is the total amount of amortization expense : At the beginning of the year, Big Time Tires acquired 100% of the common stock of Discount Tires. The purchase price allocation included the following items: $770,000, patent; $250,000, trademark considered to have an indefinite useful life; an..

Comment brie?y on whether the contributions from donors : For purposes of external reporting, not-for-pro?ts-unlike governments in their governmental funds-do not distinguish between plant and other types of resources. In 2014, the Northwest Ballet Association (NBA), a not-for-pro?t performing arts or..

Determine the work done on the object by the applied force : An object initially at an elevation of 5 m relative to Earth's surface with a velocity of 50 m/s is acted on by an applied force R and moves along a path. Its final elevation is 20 m and its velocity is 100 m/s. The acceleration of gravity is 9.81 m/..

The accrual method of accounting : Taxpayer is a securities firm which uses the accrual method of accounting. Taxpayer executes stock trades and performs settlement functions. Settlement functions include recording the sale and confirming it with the customer. Trades made on De..

What is the volume capacity of cylinder with stops engaged : 0.5 kg of water initially at 400 kPa and 0.3 m3/kg is contained within a piston-cylinder device fitted with retractable stops (initially retracted) so that the water supports the weight of the piston and the force of the atmosphere (state 1). The wat..

User Account

All Pages