What would be the amount of the acquisition differential amortized during 2018?

Question

Quizplus · Accepted Answer

The acquisition differential is the excess of the purchase price over the fair value of net identifiable assets acquired. In this case, the acquisition differential is $820,000 ($2,000,000 - $1,180,000).

The acquisition differential is amortized over its useful life, which is estimated to be 10 years. Therefore, the annual amortization expense would be $82,000 ($820,000 divided by 10).

Therefore, the correct choice is C.

What Would Be the Amount of the Acquisition Differential Amortized