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 patent has a remaining life of 75 months, what is the total amortization expense Jorge may deduct during the current year?
A) $0
B) $5,500
C) $6,000
D) $12,000
E) None of these

Question

Quizplus · Accepted Answer

The amortization expense is calculated by dividing the purchase price by the remaining life of the copyright in months, then multiplying by the number of months in the current year. ($75,000 / 75 months) * 6 months = $6,000.

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