product will generate cash flow for an indefinite period of time. The
license has an initial term of 5 years but by paying the normal fee,
Alatorre can renew the license indefinitely for successive 5-year terms.
What amount should be amortized for the year ended December 31,
2008?
E11-18: (Goodwill Impairment) Presented below is net asset
information related to the Carlos Division of Santana, Inc.
Carlos Division
Net Assets
As of December 31, 2008
(in millions)
Cash
$ 50
Receivables
200
Property, plant, and equipment (net)
2,600 Goodwill
200 Less: Notes payable
(2,700)
Net assets
$ 350
The purpose of the Carlos division is to develop a nuclear-
powered aircraft. If successful, traveling delayes associated with
refueling could be substantially reduced. Many other benefits would