Question

LO 12.2 treba Costs of hiring new employees 12,000 Attorney's fees in connection with the organization of the company 6,000 Improvements to leased offices prior to occupancy (10-year lease) 5,000 Costs of pre-opening advertising Required: 1. What amount should the company expense in 2019: In 2020 2. Next Level What is the justification of the accounting treatment of these costs? E12-11 Various Intangible Assets Barnum Company acquired several small companies at the end of 2016 LO 121 the acquisitions, reported the following intangible assets on its December 2010. balance ch LO 12.4 LO 12.5 $20,000 Trade name 35,000 Internet domain name 10,000 Goodwill 90,000 end of 2018, and be s balance sheet: & Patent

how do I calculate the amortization expense on each asset?

Answer 1

Assets	Working	Amortization
Patents	($200,000/ 10 years)	$20,000
Internet domain name	($10,000/ 4 years)	$2,500
Trade name		NA
Goodwill		NA
Total		$22,500

Tradename: The useful life of tradename is indefinite. Therefore no amortization expense recognized.

Goodwill: it will not be amortized