On January 1, 2013, Enid Corporation purchased a patent from another company for $190,000. The estimated useful life of the patent is 10 years, and its remaining legal life is 15 years. The Amortization Expense for 2013 is:
A) $68,000.
B) $12,667.
C) $85,000.
D) $19,000.

Question

Quizplus · Accepted Answer

The amortization expense is calculated by dividing the cost of the patent by its useful life. $190,000 / 10 years = $19,000 per year.

On January 1, 2013, Enid Corporation Purchased a Patent from Another