Washburn Co. spent $10 million to purchase a new patented technology, debiting an intangible asset and crediting cash. Washburn uses SYD depreciation on its depreciable assets and plans to amortize the intangible asset on a straight-line basis. The appropriate accounting treatment is that:

Question

Quizplus · Accepted Answer

Amortizing an intangible asset on a straight-line basis is a standard accounting practice, and since Washburn is following this approach from the beginning for the new patented technology, no adjustments are required.