contestada

On June 1, 2019, Red Corporation purchased an existing business. With respect to the acquired assets of the business, Red allocated $300,000 of the purchase price to a patent. The patent will expire in 20 years. Determine the total amount that Red may amortize for 2019 for the patent.
a. $0
b. $1667
c. $11667
d. $7000

Respuesta :

Answer:

11667

Explanation:

Amortization is the technique for estimating the cost of an intangible asset with respect to its valuable life. Straight-line amortization is one methodoly that can be applied in given case.

Among the various options given I question statement, let us first do some mathematical calculations;

Company has allocated $300,000 to a patent who is expected to live 20 years. We need to determine the amount the company should amortize for year 2019.

= [$300,000 × (7 months/180 months)].

= 11667 $

Answer:

Answer is C. $11667

Refer below

Explanation:

$11667 [300,000 × (7 /180 )]. The amortization period is 15 years.

Otras preguntas