Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15 ^th and the purchase price was $66,000. If the copyright has a remaining life of 75 months, what is the total amortization amount Jorge may deduct during the current year? (Assume this is not an asset acquisition to which §197 applies.) A) $0 B) $4,840 C) $5,280 D) $10,560 E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The amortization amount is calculated by dividing the purchase price by the remaining life in months and then multiplying by the number of months in the current year. $66,000 / 75 months = $880 per month. For the current year (July 15 to December 31), Jorge can amortize 6 months: $880 * 6 = $5,280.

Jorge Purchased a Copyright for Use in His Business in the Current