Question

Daschle LLC completed some research and development during June of the current year. The related costs were $69,600. If Daschle wants to capitalize and amortize the costs as quickly as possible, what is the total amortization amount Daschle may deduct during the current year

Answer 1

Answer:

The answer is "8073.6".

Explanation:

Given:

Cost$=69,600$

Total years$= 5 \ or\ 60\ months$

total months during the year$=7$

Calculating the Amortization expense:

$= 69,600 \times \frac{7}{60}\\\\= 6,960 \times \frac{7}{6}\\\\= 6,960 \times 1.16\\\\=8073.6$