Question

On April 1 of the current year, Moreno Company purchased a patent from another company for $80,000. The estimated useful life of the patent is 10 years, and its remaining legal life is 5 years. How much is Moreno's amortization expense for the current year?

Answer 1

$8,000

Step-by-step explanation:

Amortization is the expensing of the cost of an intangible asset or loan over the useful life of the asset or loan.

Amortization expense = Cost of the patent / useful life

$80,000 / 10 = $8,000

The amortization expense each year would be $8,000

I hope my answer helps you.