At the beginning of the year big time tires acquired 100 of


At the beginning of the year, Big Time Tires acquired 100% of the common stock of Discount Tires. The purchase price allocation included the following items: $770,000, patent; $250,000, trademark considered to have an indefinite useful life; and $5.0 million, goodwill. Big Time Tire's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a four-year service life.

What is the total amount of amortization expense that would appear in Big Time Tire's income statement for the first year related to these items?

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Accounting Basics: At the beginning of the year big time tires acquired 100 of
Reference No:- TGS0957238

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