Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15ᵗʰ and the purchase price was $75,000. If the copyright has a remaining life of 75 months, what is the total amortization expense Jorge may deduct during the current year? (Assume not in an asset acquisition to which §197 applies)
A) $0.
B) $5,500.
C) $6,000.
D) $12,000.
E) None of the choices are correct.

Question

Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15ᵗʰ and the purchase price was $75,000. If the copyright has a remaining life of 75 months, what is the total amortization expense Jorge may deduct during the current year? (Assume not in an asset acquisition to which §197 applies) 
A) $0.
B) $5,500.
C) $6,000.
D) $12,000.
E) None of the choices are correct.

Quizplus · Accepted Answer

The amortization is $6,000 ($75,000/75) × 6. The amortization period on a purchased copyright is the asset's remaining useful life.

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