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IRISSAK [1]
3 years ago
13

Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15th and the purchase pri

ce was $75,000. If the copyright has a remaining life of 75 months, what is the total amortization amount Jorge may deduct during the current year?
Business
1 answer:
jolli1 [7]3 years ago
7 0

Answer:

$6,000

Explanation:

Purchase price = $75,000

Remaining life = 75 months

The amortization amount for each month (Am) is given by  the total purchase price divided by the remaining life of the copyright.

A_m=\frac{\$75,000}{75}=\$1,000\ per\ month\\

Since the purchase was made in July, there are 6 months left in the current year. Therefore, Jorge's total amortization amount during the current year is:

A=6*\$1,000 = \$6,000

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