Amortization of Intangibles For each of the following intangible assets, indicat

Question

Amortization of Intangibles For each of the following intangible assets, indicate the amount of amortization expense that should be recorded for the year 2017 and the amount of accumulated amortization on the balance sheet as of December 31, 2017 Trademark Patent Copyright $40,000 $50,000 $80,000 1/1/1s Cost Date of purchase 1/1/10 1/1/12 Useful life Legal life Method Represents the straight-line method. indefinite 10 yrs. 20 yrs undefined 20 yrs. 50 yrs SL. SL SL If an amount is zero, enter "O" Amount 2017 amortization expense Accumulated amortization, Dec. 31, 2017 Trademark Patent Copyright

Explanation / Answer

Computation of patent Amortisation in 2017 and Accumulated Amortisation Patent Cost $50,000.00 Useful Life 10 Yrs. Amortisation in 2017 ($50000/10) $5,000.00 Accumulated Amortisation as on Dec 2017 $30,000.00 (6 year* $5000) Computation of Copyright Amortisation in 2017 and Accumulated Amortisation Copyright Cost $80,000.00 Useful Life 20 Year Amortisation in 2017 ($80000/20) $4,000.00 Accumulated Amortisation as on Dec 2017 $12,000.00 (3 year* $4000) Trademark is indefinite life Hence Amortisation will not be calculated.

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