Jeff Corporation purchased a limited-life intangible asset for $120,000 on May 1, 2006.It has a useful life of 10 years.What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2008?
A)$ -0-
B)$24,000
C)$32,000
D)$36,000

Question

Quizplus · Accepted Answer

The total amortization expense for 3 years (May 1, 2006 - December 31, 2008) can be calculated as follows:
Annual amortization expense = $120,000 / 10 years = $12,000
Total amortization expense for 3 years = $12,000 x 3 = $36,000. Therefore, the correct answer is (C) $32,000.

Jeff Corporation Purchased a Limited-Life Intangible Asset for $120,000 on May