Final answer:
Jorge's copyright amortization expense for the current year is $5,000, calculated by taking the purchase price of $75,000, dividing by the remaining life of the copyright (75 months), and then multiplying by the number of months remaining in the current year after purchase (5 months).
Step-by-step explanation:
The question deals with the amortization of a copyright that has been purchased for use in a business. Jorge purchased the copyright on July 15th for $75,000, and it has a remaining life of 75 months. To calculate the amortization expense for the current year, divide the purchase price by the number of months of the copyright's remaining life and then multiply by the number of months in the current year after the purchase. The calculation goes as follows:
$75,000 purchase price ÷ 75 months = $1,000 per month.
Jorge purchased the copyright in July, so he will only amortize the copyright for the months of August through December in the current year, which equals 5 months. So, the total amortization for the current year is $1,000 per month × 5 months = $5,000.
None of the offered options A. $0 B. $5,500 C. $6,000 D. $12,000 E. None of these match the calculation, so Jorge's correct amortization expense for the current year would be $5,000, which is not listed in the options provided.