What is the amortization amount for each intangible asset

Assignment Help Finance Basics
Reference no: EM13284465

On January 1 of the current year, Palm Corporation purchased the net assets of Vicki's unincorporated business for $600,000. The tangible net assets have a $300,000 book value and a $400,000 FMV. The purchase agreement states that Vicki will not compete with Palm corporation by starting a new business in the same area for a period of fiver years.. The stated consideration received by Vicki for the covenant not to compete is $50,000. Other intangible assets included in the purchase agreement are as follows:

Goodwill: $70,000

Patents (12 year - year remaining legal life): $30,000

Customer list : $50,000

a. How would Vicki's assets be recorded for tax purposes by Palm corporation?
b. What is the amortization amount for each intangible asset in the current year?

 

Reference no: EM13284465

Questions Cloud

Evaluate the molarity of a solution made by dissolving : What is the molarity of a solution made by dissolving 45.3 g of potassium nitrate KNO3 in enough water to make 225 ml of solution
Determine what is the induced emf in the armature : A 12-kW, 120-V dc series generator has a series field resistance of 0.05 Ω. The generaated emf is 135V when the generator delivers the rated load at its rated terminal voltage. What is the armature resistance
Compute the amplitude of propagation of the wave : The equation of a transverse wave traveling along a very long string is y = 5.0 sin (0.055 ?x + 6.0 ?t), compute the amplitude of propagation of the wave
Explain hclo3 and hno3 are strong acids : Which of the following statements is/are correct. i. KBr, HClO3, and HClO2 are strong acids ii. NaH, KOH, and Li2O are strong bases iii. HI, HClO3, and HNO3 are strong acids
What is the amortization amount for each intangible asset : The stated consideration received by Vicki for the covenant not to compete is $50,000. Other intangible assets included in the purchase agreement are as follows.
Should the investment to be undertaken : Operating savings from the new production facility are expected to be $300,000 per year for the next 10 years.
Explain the concentration of the permanganate solution : What was the concentration (mol/L) of the permanganate solution. Submit answers correct to two decimal places.
Calculate how fast did the ball strike the ground : a ball is thrown upward from the roof of a building, passes the roof going down three seconds later, how fast did the ball strike the ground
What was the bank franc rate of return : The borrower repaid euros at loan maturity and when the loan was repaid the exchange rate was 1.98 francs per dollar. What was the bank's franc rate of return? -2.82% 9.94% 5.71% 7.75% 11.04%

Reviews

Write a Review

Finance Basics Questions & Answers

  Provide short answer

According to the December 22, 2003 issue of Forbes, given below are the ten questions every investor should ask before purchasing a stock;

  The theory of market efficiency

Theory of market efficiency is based on premise that a market is considered efficient when stock prices are an actual reflection of information known about a company.

  What is the inventory period

On May, 19, a company purchased $1,000 worth of inventory on credit. The company paid the bill after 30 days. The inventory was sold for $1,400 after another 40 days. What is the inventory period.

  Determine the second deposit amount

Suppose you want to purchase a new ski boat two years from now, and you plan to save $8,200 per year, starting one year from today. You will deposit your savings in an account that pays 6.2% interest.

  What annual interest rate must they earn to reach their goal

Your parents will retire in 19 years. They currently have $300,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your ans..

  Compute the net investment required for project

LISP Corporation is considering to buy a new dubber for $50,000. The new equipment will replace an older mixer that has been fully depreciated but has a salvage value of $5,000.

  What is the discounted payback statistic for a project

What is the discounted payback statistic for a project with yearly cash flows of -10,000; 2,500; 3,500; 4,000; 2,000 when the company faces a zero percent cost of capital?

  Compute the required minimum distribution

Compute the required minimum distribution for jason.

  Annuity and dividends for common stocks

Morgan Jennings, a geography professor, invests $50,000 in a parcel of land that is expected to increase in value by 12 percent per year for the next five years. He will take the proceeds and provide himself with a 10-year annuity a 12 percent int..

  What is likely total of long term debt plus equity capital

If the firm follows a maturity matching (or moderate working capital financing policy) what is the most likely total of long term debt plus equity capital?

  What is your expected rate of return on this stock

There is a 5 percent probability of a boom and a 75 percent chance of a normal economy. What is your expected rate of return on this stock?

  Impact of accounting for operating leases

Issuance of SI par value common stock at an amount greater than par value and donation of land by a governmental unit to a corporation

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd