Amortizing in the Equity Method - question first, question, expected, amount

Ionutzakis

On page 123, under Solution 2, why are they amortizing the full $9,000 in 2009?  Isn’t $9,000 the full amount that need to be amortized over 10 years?  I expected them to amortize just $900 in the first year (i.e. $9000/10 years).

JPSem

Are you missing a zero? Excess price paid was 140k. Of that, 90k was allocated to PPE (30% of FV - BV = 0.3 * 300k = 90k). This 90k has a useful life of 10 years. Depreciation = 90k/10 = 9000.