Question

jason company purchased a newly granted patent for $60,000 cash. the patent is expected to have a useful life of 25 years, a legal life of 20 years and a zero salvage value. the annual amortization charge is .

Answer 1

The annual amortization charge for the patent is $2,400.

Step-by-step explanation:

To calculate the annual amortization charge for the patent, you need to divide the cost of the patent by its useful life. In this case, the cost of the patent is $60,000 and the useful life is 25 years.

Annual amortization charge = Cost of patent / Useful life = $60,000 / 25 = $2,400

Therefore, the annual amortization charge for the patent is $2,400.