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

question 48

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 combination at the year-end date of 12/31/15.

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Definitions:

Ataque De Nervios

A culturally bound syndrome predominantly seen among Latin American and Latino populations, characterized by episodes of intense emotional upset including crying, screaming, and verbal or physical aggression.

Self-Esteem

Someone's self-perceived valuation of their own importance or esteem.

Promiscuous Behavior

Refers to engaging in multiple sexual relationships or activities with little or no emotional commitment.

Biological Needs

Fundamental physiological requirements essential for maintaining life, such as food, water, and shelter.