Several years ago, Welch Company purchased a copyright, which they amortize on a straight-line basis over its estimated useful life. The company's balance sheets follow at December 31, 2017, and 2016:
$$\begin{array} { | c | c | c | }
\hline \text { (In thousands) } & \begin{array} { c }
\text { December 31, } \
2017
\end{array} & \begin{array} { c }
\text { December } 31 , \
2016
\end{array} \
\hline \begin{array} { c }
\text { Copyright, less accumulated amortization af } \$ 15,000 ( 2016 ) \
\text { and } \$ 18,000 ( 2017 )
\end{array} & \$ 132,000 & \$ 135,000 \
\end{array}$$
A. How much amortization expense did Welch record during 2017?
B. Calculate the original cost of the patent.
C. As of December 31, 2017, over how many years has Welch amortized the copyright?

Question

Several years ago, Welch Company purchased a copyright, which they amortize on a straight-line basis over its estimated useful life. The company's balance sheets follow at December 31, 2017, and 2016:
 $$\begin{array} { | c | c | c | } 
\hline \text { (In thousands) } & \begin{array} { c } 
\text { December 31, } \
2017
\end{array} & \begin{array} { c } 
\text { December } 31 , \
2016
\end{array} \
\hline \begin{array} { c } 
\text { Copyright, less accumulated amortization af } \$ 15,000 ( 2016 ) \
\text { and } \$ 18,000 ( 2017 )
\end{array} & \$ 132,000 & \$ 135,000 \
\end{array}$$ 
A. How much amortization expense did Welch record during 2017?
B. Calculate the original cost of the patent.
C. As of December 31, 2017, over how many years has Welch amortized the copyright?

Quizplus · Accepted Answer

The Answer of Several years ago, Welch Company purchased a copyright, which they amortize on a straight-line basis over its estimated useful life. The company's balance sheets follow at December 31, 2017, and 2016:
 $$\begin{array} { | c | c | c | } 
\hline \text { (In thousands) } & \begin{array} { c } 
\text { December 31, } \
2017
\end{array} & \begin{array} { c } 
\text { December } 31 , \
2016
\end{array} \
\hline \begin{array} { c } 
\text { Copyright, less accumulated amortization af } \$ 15,000 ( 2016 ) \
\text { and } \$ 18,000 ( 2017 )
\end{array} & \$ 132,000 & \$ 135,000 \
\end{array}$$ 
A. How much amortization expense did Welch record during 2017?
B. Calculate the original cost of the patent.
C. As of December 31, 2017, over how many years has Welch amortized the copyright?

Several Years Ago, Welch Company Purchased a Copyright, Which They