Question

Vinson Company purchased a patent for $180,000 at the beginning of Year8, and estimated that its expected useful life was 5 years from the purchase date. The patent has a legal life of 20 years. What amount should be recorded as amortization expense for the patent in Year8?a. $9,000 b. $36,000 c. $18,000 d. $72,000 e. $180,000

Answer 1

Answer:

amortization expense is $36000

Explanation:

given data

purchased = $180000

time = 5 year

to find out

amount recorded as amortization expense

solution

we know here purchased  patent  for 180000 and here life is 5 years

so here

amortization expense will be purchased / time

amortization expense =  purchased / time

amortization expense = 180000 / 5

so amortization expense is $36000