On September 30, Morgan, Inc. acquired all of the outstanding common stock of Pathways, Inc., for $100 million. In addition to tangible assets, Morgan recorded the following assets as a result of the

On September 30, Morgan, Inc. acquired all of the outstanding common stock of Pathways, Inc., for $100 million. In addition to tangible assets, Morgan recorded the following assets as a result of the acquisition: Morgan’s policy is to amortize intangible assets using the straight-line method, no residual value, and a six-year useful life.

Patent – $6 million

Developed Technology – $3 million

In process research and development – $2 million

Goodwill – $7 million

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