On 4/1/09, Sey Mold Corporation Acquired 100% of DotDot

question 119

Essay

On 4/1/09, 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:

Acetylcholine

A neurotransmitter involved in many functions including muscle activation, heart rate, and the processing of memory and cognition.

Synaptic Cleft

The microscopic gap between neurons across which neurotransmitters are released, facilitating communication between cells.

Neurotransmitter Effects

The impacts or actions exerted by neurotransmitters, which are chemicals responsible for transmitting signals across a chemical synapse between neurons or between neurons and muscles.

Receptors

Proteins located on the surface of or within cells, which bind to specific molecules, triggering a physiological response.