Final answer:
The annual amortization expense of a copyright worth $140,000 with a 5-year useful life is $28,000. For half of 2016, since the purchase date is July 1, the amortization expense is $14,000.
Step-by-step explanation:
The question pertains to the calculation of amortization expense for a copyright acquired by Linden Company. The copyright, purchased for $140,000 with an estimated useful life of 5 years, will be amortized evenly over this period.
Since the purchase was made on July 1, 2016, only half of the year's amortization expense should be recognized for 2016.
To calculate the annual amortization expense, divide the cost of the copyright by its useful life ($140,000 / 5 years = $28,000 per year). For half a year, the amortization expense would be $28,000 / 2 = $14,000. Therefore, the amount of amortization expense recognized for the year 2016 is $14,000.