Intangibles
Response to the following problem:
The Barnum Company acquired several small companies at the end of 2009, and based on the acquisitions, reported the following intangibles in its December 31, 2009 balance sheet:
Patent $20,000
Tradename 35,000
Computer software 10,000
Goodwill 90,000
The company's accountant determines the patent has an expected life of 10 years and no expected residual value, and that it will generate approximately equal benefits each year. The company expects to use the tradename for the foreseeable future. The accountant knows that the computer software is used in the company's 120 sales offices. The company has replaced the software in 60 offices in 2010, and expects to replace the software in 40 more offices in 2011 and the remainder in 2012.
Required
How much amortization expense should the company recognize on each intangible asset in 2010?