contestada

On January 1, 2017, Desert Company purchased a copyright for $2,500,000, having an estimated useful life of 16 years. In January 2021, Desert paid $326,927 for legal fees in a successful defense of the copyright. Copyright amortization expense for the year ended December 31, 2021, should be?

Respuesta :

Answer:

$183,493.91

Explanation:

The computation of the amortization expense is shown below:

but before that following calculations are needed

The Amortization cost per year is

= $2,500,000 ÷ 16 years

= $156,250

Now the legal fees per year

= $326,927 ÷ 12 years

= $27243.92

Now the amortization expense is

= $156,250 + $27243.92

= $183,493.91