Question

Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15th and the purchase price was $67,500. If the patent has a remaining life of 75 months, what is the total amortization expense Jorge may deduct during the current year?A) $0B) $4,950C) $5,400D) $10,800E) None of the choices

Answer 1

Answer:

total amortization expense = $5400

so correct option is C) $5,400

Explanation:

given data

purchase price = $67,500

time period = 75 months

months  = 6th

to find out

total amortization expense

solution

we get here total amortization expense that is express as

total amortization expense = $\frac{purchase\ price}{time\ period}$ ×months  ...............1

put her value we get

total amortization expense = $\frac{67500}{75}$ × 6

total amortization expense = $5400

so correct option is C) $5,400