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QUESTION

Company A acquired company B on December 2015 prior to the acquisition company A reported zero tangible assets.

Company A acquired company B on December 2015 prior to the acquisition company A reported zero tangible assets. In accounting for the acquisition company A allocated 9,000 of the purchase price to company b customer list and 32,400 to goodwill. Assuming that company A used straight straight line amortization and expects company B customers to remain loyal for three years what would company A report as its net book value of intangible assets at the end of 2016? What the best way to get to this solution?

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