On May 1, 2014, Irwin Company purchased the copyright to Quick Computer Tutorials for $90,000. It is estimated that the copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2014 would be

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The copyright is amortized over its useful life of 5 years. The annual amortization expense is $90,000 / 5 = $18,000. Since the purchase was made on May 1, 2014, only 8 months of amortization is recognized for 2014: ($18,000 / 12) * 8 = $12,000.

On May 1, 2014, Irwin Company Purchased the Copyright to Quick