Amortization and depreciation refer to the preceding


Question: Amortization and Depreciation Refer to the preceding problem, number 3. Suppose a year passes, and Cloud and Tron generate individual net incomes of $105 million and $35 million, respectively. The latter is after a deduction by Tron of $12 million of straight-line depreciation. Compute the consolidated net income if

(1) goodwill is not impaired and

(2) half of the goodwill is written off at the end of the year. Ignore income taxes.

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Accounting Basics: Amortization and depreciation refer to the preceding
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