Answer:
Given the revised useful life, Beerbo expects the useful life of the patent to expire on December 31, 2024 .
Book Value at the end of 2019 / beginning of 2020 = $666,667
Explanation:
In the Books Of Beerbo
Given
Cost of Patent= $ 1000,000
Useful Life = 10 years
In early 2020, Beerbo determined that the economic benefits of the patent would not last longer than 4 more years.
So the useful life of the patent will expire on December 31,<u>2024.</u>
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<u>As </u>Beerbo estimated the useful life of the patent to be 6 years instead of 10 years so amortizing the patent accordingly would given
Amortization for 1 year = Cost/ Useful life= $ 1000,000/6= $ 166666.67
Amortization for 2 years=$ 166666.67*2= $ 333,333
Book Value at the end of 2019 / beginning of 2020= Cost - Amortization= $ 1000,000-$ 333,333= $666,667