How much amortization expense on the goodwill can ingrid

Assignment Help Financial Accounting
Reference no: EM132317532

Question

After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $300,000. Ingrid allocated $50,000 of the purchase price to goodwill. Ingrid's business reports its taxable income on a calendar-year basis. How much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, and year 3?

Reference no: EM132317532

Questions Cloud

Why a company can apparently make a good profit : Explain to the managing director why a company can apparently make a good profit but have no cash in the bank.
What are some of the business valuation models used : What are some of the business valuation models used in acquisition process? What models would you think provide the best business valuation methods.
Draft an appropriate and effective picot question : Keep in mind your project will continue to evolve and take more specific shape as you move through your program. It is important to begin with a workable PICOT.
Record all journal entries to dissolve the partnership : The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $72 000. Record all journal entries to dissolve the partnership.
How much amortization expense on the goodwill can ingrid : After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired.
What is your response to the concept of design thinking : Topic - Shaping Organisational Culture. What is your response to the concept of design thinking and design-centric culture
Discussion on risk management program analysis : This assignment builds on the Risk Management Program Analysis Part One assignment you completed in Topic 1 of this course. Assume that the example risk.
Why do companies raise equity capital : According to the sources above does Apple currently have equity capital on issue? Why do companies raise equity capital? What has happened to the Apple share
Calculate the total interest expense incurred in 2020 : The company receives $997,900 when the bonds are issued.The company also issues a mortgage payable for $600,000 on January? 2, 2020.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What features are likely to make a balance sheet helpful

What features are likely to make a balance sheet helpful to users? Could a statement of cash flows be presented as the only financial statement reported by a company? Explain your view.

  How would detective control be applicable

Ajax Company is a large retail Company that sells clothing, shoes and other apparel. It has 40 retail outlets located in 22 states. All of its merchandise is purchased by a centralized Procurement Organization located at the company’s headquarters in..

  Alex anderson recently won lottery

Alex Anderson recently won a lottery and has the option of receiving one of the following three prizes: Assuming an interest rate of 6%, which option should Alex choose?

  Prepare the journal entries for the 2016 financial year

Prepare the journal entries for the 2016 financial year using the percentage-of-completion method.

  Question1 the given selected transactions relate to

question1. the given selected transactions relate to liabilities of united insulation corporation. uniteds fiscal year

  Observation of the clients physical count of inventory

Sammy Smith is the partner in charge of the audit of Blue Distributing Corporation, a wholesaler that owns one warehouse containing 80 percent of its inventory. What evidence should Smith expect to find indicating that the observation of the client’s..

  Stock investment transactions

On March 20, 10,000 shares of Thorlite Company are acquired at a price of $30 per share plus a $250 brokerage fee. On May 30, a $0.25-per-share dividend was received on the Thorlite Company stock. On June 15, 5,000 shares of the Thorlite Company stoc..

  Investment in clem under the equity method

On January 3, 2009, Haskins Corporation acquired 40 percent of the outstanding common stock of Clem Company for $990,000. This acquisition gave Haskins the ability to significant influence over the investee. At December 31, 2009, what should Haskins ..

  Gerrad manufacturing has projected sales of its product for

gerrad manufacturing has projected sales of its product for the next six months as givenjanuary 300 unitsfebruary 700

  Responsibility for a chief financial officer

FIN200 Assignment - Explain how those responsibilities can affect ultimate objective of the company. The name of company you choose should start with the first letter of your first, last or middle name.

  Calculate number of hours of direct labor used in november

Calculate the number of hours of direct labor used during November and actual manufacturing overhead costs incurred during November totaled $166, 425. Calculate the amount of over- or underapplied overhead for November.

  Subsidiary has previously unreported brand names valued

A subsidiary has previously unreported brand names valued at $50 million at the date of acquisition. The brand names have an indefinite life. It is now the end of the second year since acquisition, and you are consolidating the accounts. The amount b..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd