Question

Daschle LLC completed some research and development during June of the current year. The related costs were $66,600. If Daschle wants to capitalize and amortize the costs as quickly as possible, what is the total amortization expense Daschle may deduct during the current year?

A) $7,770
B) $13,320
C) $7,215
D) $0
E) None of the choices are correct

Answer 1

total amortization expense = $7770

so correct option is A) $7,770

Step-by-step explanation:

given data

related costs = $66,600

time = June

to find out

what is the total amortization expense

solution

we know that amortization period on capitalized research and development is not less than 60 months

and June month is 7th month

so here total amortization expense will be express as

total amortization expense = 66600 ×
`(7)/(60)`

total amortization expense = $7770

so correct option is A) $7,770