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On January 1, 2015, Epstein completed the acquisition of the Johnstone Corporation for $2,000,000 in cash. The fair value of the net assets of Johnstone was $1,700,000. Included in the assets purchased from Johnstone was a patent that was valued at $80,000. The remaining legal life of the patent was 13 years, but Epstein believes that the patent will only be useful for another eight (8) years. What is the total amount of intangible assets reported on the company's December 31, 2015 balance sheet? a. $10,000 b. $70,000 c. $300,000 d. $370,000

On January 1, 2015, Epstein completed the acquisition of the Johnstone Corporation for $2,000,000 in cash. The fair value of the net assets of Johnstone was $1,700,000. Included in the assets purchased from Johnstone was a patent that was valued at $80,000. The remaining legal life of the patent was 13 years, but Epstein believes that the patent will only be useful for another eight (8) years. What is the total amount of intangible assets reported on the company's December 31, 2015 balance sheet? a. $10,000 b. $70,000 c. $300,000 d. $370,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2015, Epstein completed the acquisition of the Johnstone Corporation for $2,000,000 in cash. The fair value of the net assets of Johnstone was $1,700,000. Included in the assets purchased from Johnstone was a patent that was valued at $80,000. The remaining legal life of the patent was 13 years, but Epstein believes that the patent will only be useful for another eight (8) years. What is the total amount of intangible assets reported on the company's December 31, 2015 balance sheet? a. $10,000 b. $70,000 c. $300,000 d. $370,000
Transcribed Image Text:On January 1, 2015, Epstein completed the acquisition of the Johnstone Corporation for $2,000,000 in cash. The fair value of the net assets of Johnstone was $1,700,000. Included in the assets purchased from Johnstone was a patent that was valued at $80,000. The remaining legal life of the patent was 13 years, but Epstein believes that the patent will only be useful for another eight (8) years. What is the total amount of intangible assets reported on the company's December 31, 2015 balance sheet? a. $10,000 b. $70,000 c. $300,000 d. $370,000
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