Help calculating Amortization expense Exercise 7-11 These are selected 2017 tran
ID: 2522433 • Letter: H
Question
Help calculating Amortization expense
Exercise 7-11 These are selected 2017 transactions for Blue Corporation: Jan. 1 Purchased a copyright for $79,500. The copyright has a useful life of 5 years and a remaining legal life of 31 years. Mar. 1 Purchased a patent with an estimated useful life of 5 years and a legal life of 21 years for $112,800. Sept. 1 Purchased a small company and recorded goodwill of $150,200. Its useful life is indefinite Indicate the amount of amortization expense on December 31, 2017, for Blue Corporation Amortization expense s LINK TO TEXTExplanation / Answer
Answer:
Amortization expanses=$34,700
Working notes for the answer:
1
Amortization expanses for 2017
Copyrights($79,500 / 5)
15900
Patents [($112,800 /5 ) * (10 /12 )]
18800
Total Amortization expanses for 2017
34700
2
No amortization will be made on the goodwill.
Amortization expanses for 2017
Copyrights($79,500 / 5)
15900
Patents [($112,800 /5 ) * (10 /12 )]
18800
Total Amortization expanses for 2017
34700
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