Explain amortize intangible assets with finite useful lives


In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $4 million, patent; $5 million, trademark considered to have an indefinite useful life; and $6 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life.

What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items? (Enter your answers in dollars, not in millions.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Explain amortize intangible assets with finite useful lives
Reference No:- TGS0697628

Expected delivery within 24 Hours