On June 28, Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $5.5 million, patent; $4.5 million, developed technology; $3.5 million, indefinite-life trademark; $6.5 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? Note: Enter your answers in whole dollars, and not in millions. Patent Developed technology Indefinite-life trademark Goodwill Amortization expense in current year $ Cost 5,500,000 4,500,000 3,500,000 6,500,000 Select Amortization expense in current year
On June 28, Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $5.5 million, patent; $4.5 million, developed technology; $3.5 million, indefinite-life trademark; $6.5 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? Note: Enter your answers in whole dollars, and not in millions. Patent Developed technology Indefinite-life trademark Goodwill Amortization expense in current year $ Cost 5,500,000 4,500,000 3,500,000 6,500,000 Select Amortization expense in current year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On June 28, Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the
following items: $5.5 million, patent; $4.5 million, developed technology; $3.5 million, indefinite-life trademark; $6.5 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?
Note: Enter your answers in whole dollars, and not in millions.
Patent
Developed technology
Indefinite-life trademark
Goodwill
Amortization expense in current year
$
Cost
5,500,000
4,500,000
3,500,000
6,500,000
Select
Amortization
expense in current
year
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