On September 30, 2018, Morgan, Inc. acquired all of the outstanding common stock of Pathways, Inc., for $100 million. In addition to tangible assets, Morgan recorded the following assets as a result of the acquisition:

Morgan's policy is to amortize intangible assets using the straight-line method, no residual value, and a six-year useful life.
Required:
What is the total amount of expenses that would appear in Morgan's income statement for the year ended December 31, 2018, related to these items?

Question

On September 30, 2018, Morgan, Inc. acquired all of the outstanding common stock of Pathways, Inc., for $100 million. In addition to tangible assets, Morgan recorded the following assets as a result of the acquisition:

Morgan's policy is to amortize intangible assets using the straight-line method, no residual value, and a six-year useful life.
Required:
What is the total amount of expenses that would appear in Morgan's income statement for the year ended December 31, 2018, related to these items?

Quizplus · Accepted Answer

The Answer of On September 30, 2018, Morgan, Inc. acquired all of the outstanding common stock of Pathways, Inc., for $100 million. In addition to tangible assets, Morgan recorded the following assets as a result of the acquisition:

Morgan's policy is to amortize intangible assets using the straight-line method, no residual value, and a six-year useful life.
Required:
What is the total amount of expenses that would appear in Morgan's income statement for the year ended December 31, 2018, related to these items?