If startup expenses total $53,000 in 2012, $51,000 is amortized over 180 months.

Question

Quizplus · Accepted Answer

This statement is true. Amortization is a process of allocating the cost of intangible assets or startup expenses over a certain period. In this case, $51,000 is being amortized over 180 months, which is equivalent to 15 years. Therefore, the remaining $2,000 of startup expenses that are not being amortized are likely to be expensed immediately or depreciated over a shorter period.

If Startup Expenses Total $53,000 in 2012, $51,000 Is Amortized