On July 1, 2019, Marlin Company purchased the copyright to Bodine Educational Tutorials for $81,000. It is estimated that the copyright will have a useful life of 5 years with an estimated residual value of $6,000. The amount of Amortisation Expense recognised to 31 December 2019 would be:

Question

Quizplus · Accepted Answer

The annual amortisation expense is ($81,000 - $6,000)/5 years = $15,000. The six months of copyright ownership to 31 December 2019 incurs a $7,500 amortisation expense.

On July 1, 2019, Marlin Company Purchased the Copyright to Bodine