Anisha Enterprises – Intangible Asset Amortization

Intangible Asset Amortization

Given the following account balances at year end, how much is amortization expense on Anisha Enterprises income statement for the current year if Anisha thinks all of its intangibles should be amortized over ten years?

Sales revenue 45,000,000
Patents 1,500,000
Accounts receivable 4,000,000
Land 15,000,000
Equipment 25,000,000
Trademarks 1,000,000
Goodwill 4,500,000
R&D 2,000,000

Total Intangible Asset Calculation

Solution: 9,000,000

In this example, we add the following accounts: Patents, Trademarks, and Goodwill. In some cases, we might leave our research and development because this is not treated the same as an asset in the United States, but rather it is expensed. 

intangible asset calculation in MS excel

intangible asset calculation in MS excel

  • Student: Astrid M.
  • Textbook: ACC 291
  • Course: Accounting Week 2

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