Xtra Energy Company purchased a business from Angus Khan for $252,000 above the fair value of its net assets. Angus Khan had developed a goodwill over 12 years. How much would Xtra Energy amortize the goodwill for its firs year?

Xtra Energy Company purchased a business from Angus Khan for $252,000 above the fair value of its net assets. Angus Khan had developed a goodwill over 12 years. How much would Xtra Energy amortize the goodwill for its firs year?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 28CE

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Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).

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