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mylen [45]
3 years ago
8

Smitty Museum purchased the copyright to a piece of artwork for $925,000. Smitty plans to reproduce 2.1 million posters of the a

rtwork over a period of 9 years. Calculate the amortization for the year assuming the Museum plans to reproduce and sell 133,000 posters the first year year
Business
1 answer:
Harman [31]3 years ago
8 0

Answer:

amoritzation expense 3,268

           copyright                       3,268

Explanation:

We will divide the acquisition cost by the total units of production:

925,000 / 2,100,000 = 0.024571429  this would be the rate per poster

<u>Then we multiply by this year level:</u>

(it is convinient to do all in a single step if using a calculator to avoid any rounding error)

133,000 x 925,000 / 2,100,000 = $3,268.00

amoritzation expense 3,268

           copyright                       3,268

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