标题: Amortizing in the Equity Method - question [打印本页] 作者: Ionutzakis 时间: 2013-4-28 12:45 标题: Amortizing in the Equity Method - question
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).作者: JPSem 时间: 2013-4-28 12:45
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.
