Bricktown Exchange purchases a copyright for $50,000.The copyright has a remaining legal life of 25 years,but only an expected useful life of five years with no residual value.Assuming the company uses the straight-line method,what is the amortization expense for the first year?

Question

Quizplus · Accepted Answer

The amortization expense is calculated by dividing the cost of the copyright ($50,000) by its expected useful life (5 years), resulting in an annual expense of $10,000.

Bricktown Exchange Purchases a Copyright for $50,000