The company I work for just acquired another company. The only thing we took from the company was their customer list and the ability to expand our operations by producing another product. We did not get any equipment or cash from the sale. How would this be recorded? I am thinking that we should record the full cost of the acquisition as an intangible asset and then amortize it through long-term and short-term liability payments as we are paying off a certain amount of the sale price each month directly to the president of the acquired company.
Very well done
Thank you!
The company I work for just acquired another company. The only thing we took from the company was their customer list and the ability to expand our operations by producing another product. We did not get any equipment or cash from the sale. How would this be recorded? I am thinking that we should record the full cost of the acquisition as an intangible asset and then amortize it through long-term and short-term liability payments as we are paying off a certain amount of the sale price each month directly to the president of the acquired company.
Thank you
No problem!