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On July 1, 2008, Morrow Motel Management Purchased a Patent

Question 34

Multiple Choice

On July 1, 2008, Morrow Motel Management purchased a patent for $81,000.The patent had a remaining legal life of 12 years.It is estimated that the patent will have a useful life of 5 years with an estimated salvage value of $6,000.The amount of Amortization Expense recognized for the year 2008 would be


A) $16,200.
B) $7,500.
C) $6,750.
D) $3,375.

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