Answer:
2019 Amortization =$1,540
2019 Book Value=$13,860
2019 Amortization =$2,440
2019 Book Value=$19,520
Explanation:
Computation for 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.
Calculation for 2019 Amortization (15,400 ÷ 10)
= 1,540
Calculation for Book Value of December 31, 2019
= 15,400 – 1,540
= 13,860
Calculation for 2020 Amortization will be:
(13,860 + legal fees 8,100) ÷ 9)
= 21,960÷9
= 2,440
Calculation for the Book Value of December 31, 2020
13,860 -2,440
=11,420
= 11,420+8,100
=$19,520
