On July 1, 2012, Arvolo Corporation purchased a copyright for $90,000. It is estimated that the copyright will have a useful life of 5 years with no residual value. The amount of Amortization Expense recognized for the year 2012 would be

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Quizplus · Accepted Answer

Amortization expense is calculated as the cost of the asset divided by its useful life. In this case, the cost of the copyright is $90,000 and its useful life is 5 years. Therefore, the amortization expense for the year 2012 would be $90,000 / 5 = $18,000.

On July 1, 2012, Arvolo Corporation Purchased a Copyright for $90,000