- The Following Information Is Available On A Company For The Year 2011 Purchased A Customer List For 200 000 Which Is 1 (57.94 KiB) Viewed 40 times
The following information is available on a
company for the year 2011: Purchased a customer list for $200,000, which is expected to provide equal annual benefits for the next 4 years. Recorded $200,000 of goodwill in the acquisition of a competitor. It is estimated that the acquisition would provide substantial benefits for the
company for at least the next 10 years. Spent $300,000 on media placements announcing the
company had donated products and services to the community. The CEO believes the firm's reputation was enhanced substantially and the
company will likely benefit from it for the next 5 years. Based on those events, the amortization expense that the
company should report in year 2011 is closest to: Select one: a. $110,000. b. None of other choices. c. $130,000. O d. $50,000. e. $80,000 f. $70,000.