Question

Jeff corporation purchased a limited-life intangible asset for $375,000 on may 1, 2016. it has a useful life of 10 years. what total amount of amortization expense should have been recorded on the intangible asset by december 31, 2018?

Answer 1

The answer in this question is $100,000. The total of amortization expense should have been recorded on the intangible asset by the date of december 31, 2018 is $100,000. Intangible asset is a type of asset that usually very hard to evaluate and lacks physical substance.