Excluding any goodwill impairment losses,what would be the amount of the acquisition differential amortization for 2009?

Question

Quizplus · Accepted Answer

The acquisition differential is $60,000 - $50,000 = $10,000. This amount is amortized over the useful life of the intangible assets acquired, which is 5 years. Therefore, the annual amortization expense would be $10,000/5 = $2,000. However, the question specifically states to exclude any goodwill impairment losses, so we can assume that there were no impairment losses on goodwill. Therefore, the full acquisition differential amortization of $2,000 for 2009 would be recognized. Multiply this amount by the two intangibles, and we get $2,000 x 2 = $4,000. Therefore, the correct answer is B ($3,000).

Excluding Any Goodwill Impairment Losses,what Would Be the Amount of the Acquisition