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Skysong Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $810,000 cash for Old Master. At the time, Old Master’s balance sheet reported assets of $650,000 and liabilities of $220,000 (thus owners’ equity was $430,000). The fair value of Old Master’s assets is estimated to be $840,000. Included in the assets is the Old Master trade name with a fair value of $6,000 and a copyright on some instructional books with a fair value of $52,800. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years.

Skysong Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $810,000 cash for Old Master. At the time, Old Master’s balance sheet reported assets of $650,000 and liabilities of $220,000 (thus owners’ equity was $430,000). The fair value of Old Master’s assets is estimated to be $840,000. Included in the assets is the Old Master trade name with a fair value of $6,000 and a copyright on some instructional books with a fair value of $52,800. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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Skysong Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $810,000 cash for Old Master. At the time, Old Master’s balance sheet reported assets of $650,000 and liabilities of $220,000 (thus owners’ equity was $430,000). The fair value of Old Master’s assets is estimated to be $840,000. Included in the assets is the Old Master trade name with a fair value of $6,000 and a copyright on some instructional books with a fair value of $52,800. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years.
Prepare the intangible assets section of Skysong Golf Inc. at December 31, 2019. SKYSONG GOLF INC. Intangibles Section of Balance Sheet December 31, 2019 Trade Names Copyrights Goodwill Total Intangible Assets $ How much amortization expense is included in Skysong income for the year ended December 31, 2019? Amortization expense $ %24
Transcribed Image Text:Prepare the intangible assets section of Skysong Golf Inc. at December 31, 2019. SKYSONG GOLF INC. Intangibles Section of Balance Sheet December 31, 2019 Trade Names Copyrights Goodwill Total Intangible Assets $ How much amortization expense is included in Skysong income for the year ended December 31, 2019? Amortization expense $ %24
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