When S.Dee Company bought B.Darin Company,the purchase price included a patent valued at $15,000.The patent has 10 years remaining of its legal life,but its estimated useful life to S.Dee Company was only 8 years.The journal entry to record the annual patent amortization would include a:
A)debit to Patent,$1,875.
B)debit to Amortization expense,$1,875.
C)credit to Patent,$1,500.
D)credit to Amortization expense,$1,500.

Question

Quizplus · Accepted Answer

Intangible long-lived assets are amortized over their useful life using the straight-line method.$15,000 ÷ 8 = $1,875.

When SDee Company Bought B