Answer:
=$8,500
Explanation:
Amortization is the depreciation of intangible assets. In calculating amortization, the cost of the asset and the expected lifespan is taken into consideration.
For Snowbird, the useful life of the patent is eight years. Usually, patents are not to be resold; hence the salvage value is zero. The amount to be amortized in 2019 will be,
Asset cost $68,000
Useful life 8 years
The rate of amortization will be 1/8 x 100
=12.5%
Amortization amount = 12.5/100 x $68,000
=0.125 x $68,000
=$8,500
