Question

At the start of the current year, a company paid for the following in cash: Copyrights, $500,000 Equipment, $25,000,000 Goodwill, $4,500,000 Inventory, $4,000,000 Land, $15,000,000 Prepaid rent, $500,000 Research and development, $2,000,000 Supplies, $1,500,000 Trademarks, $1,000,000 It amortizes its intangibles over 10 years. Determine its current year amortization expense.

Answer 1

Answer:

$50,000

Explanation:

Calculation to determine its current year amortization expense.

Using this formula

Current year amortization expense=(Copyrights /Numbers of Intangibles years)

Let plug in the formula

Current year amortization expense=($500,000/10 years)

Current year amortization expense=$50,000

Therefore its current year amortization expense will be $50,000