On 1/1/19, Sey Mold Corporation Acquired 100% of DotDot

question 41

Essay

On 1/1/19, Sey Mold Corporation acquired 100% of DotDot.Com for $2,000,000 cash. On the date of acquisition, DotDot's net book value was $900,000. DotDot's assets included land that was undervalued by $300,000, a building that was undervalued by $400,000, and equipment that was overvalued by $50,000. The building had a remaining useful life of 8 years and the equipment had a remaining useful life of 4 years. Any excess fair value over consideration transferred is allocated to an undervalued patent and is amortized over 5 years.Determine the amortization expense related to the combination at the year-end date of 12/31/19.

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Definitions:

Social Ecosystem

A social ecosystem refers to a dynamic and interconnected system of communities, organizations, and environments in which social interactions and relationships evolve and influence behavior.

Shared Environment

Aspects of an individual's environment that are experienced collectively with others, contributing to similarities in behavior and development.

Autonomy

The capacity to make an informed, uncoerced decision or the ability of an individual to act independently.

Voluntary

Actions or decisions made based on individual free will or choice, without external coercion.