Problem:
On January 1, 2011, Charlie Corporation acquired all of the net assets of Rocky Corporation for $2,000,000. The following intangible assets are included in the purchase agreement:
- Goodwill and going concern value $105,000
- Licenses 45,000
- Patents 60,000
- Covenant not to compete for five years 120,000
Required:
Question: What is the total amount of amortization allowed in 2011?
a. $15,000
b. $22,000
c. $31,000
d. $38,000
Note: Please provide through step by step calculations.