er 20 Quiz Saved Help Save & Exit Hepburn Company bought a copyright for $115,20

Question

er 20 Quiz Saved Help Save & Exit Hepburn Company bought a copyright for $115,200 on January 1. 2015, at which time the copyright had an estimated expire at the end of 2021. How 2018? (Do not round your intermediate calculation and round your answer to the nearest dollar a useful life of 16 years. On January 5. 2018, the company determined that the copyright would much should Hepburn record as amortization expense for this copyright for diate calculation and round your answer to the nearest dollar amount.) Multiple Choice $1,440 $23,400 Prev 7 of 12 11: Next > earch

Explanation / Answer

Solution:

Cost of copyright = $115,200

Amortization during 2015 to 2017 = $115,200/16*3 = $21,600

Carrying value at the end of 2017 = $115,200 - $21,600 = $93,600

Remaining useful life after 2017 = 4 years

Thereofre amortization expense for 2018 = $93,600 / 4 = $23,400

Hence 2nd option is correct.

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