Investement

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

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

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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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