Investement

1. What is an intangible asset? What is amortization?

2. How are investing activities reported on the income statement?

3. How are investing activities reported on the statement of cash flows?

4. How are the results of investing activities reported on the balance sheet?

Baker Communications purchased land, a building, and several pieces of equipment for $5,400,000. An appraisal of the purchased items estimated the value of the land at $3,100,000, the building at $1,850,000, and the equipment at $650,500.

Determine the portion of the total purchase price applicable to each asset.

 

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