How the total amount of amortization allowed


On January 1, 2011, Charlie Corporation acquired all of the net assets of Rocky Corporation for $2,000,000. The following intangible assets are included in the purchase agreement:

Goodwill and going concern value $105,000

Licenses 45,000

Patents 60,000

Covenant not to compete for five years 120,000

What is the total amount of amortization allowed in 2011?

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Accounting Basics: How the total amount of amortization allowed
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