On 4/1/11, Sey Mold Corporation Acquired 100% of DotDot

question 65

Essay

On 4/1/11, 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 consolidation at the year-end date of 12/31/19.

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Definitions:

Cooperation

The process or action of working together to the same end, especially in a joint intellectual effort.

Immune Response

The body's defensive reaction to foreign substances or microorganisms, including both specific and nonspecific mechanisms.

Eosinophils

A type of white blood cell that is involved in the body’s immune response, particularly in fighting off certain parasitic infections and in allergic reactions.

Phagocytosis

The ingestion of particles by a cell or phagocyte, playing a crucial role in the immune response by clearing pathogens.