Kow-Pow Company purchased a limited-life intangible asset for $180,000 on May 1, 2017. It has a useful life of 10 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2019? (Round any calculations to the nearest cent, and your final answer to the nearest dollar.)
A) $0
B) $36,000
C) $48,000
D) $54,000

Question

Quizplus · Accepted Answer

The asset is amortized over 10 years, so the annual amortization is $18,000 ($180,000/10). From May 1, 2017, to December 31, 2019, is 2 years and 8 months. The amortization for this period is $48,000 (2.67 years * $18,000).

Kow-Pow Company Purchased a Limited-Life Intangible Asset for $180,000 on May