Question

On May 1, 2017, Sandhill Co. purchased the copyright to Monty Corp. for $104400. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be _____________.

Answer 1

The amount of amortization expense recognized for the year 2017 would be =$174000.

Step-by-step explanation:

Amortization expense for year 2017 = ($1044000 / 4 years) * 8 months/12 months

Amortization expense for year 2017 = ($261000*8 months/12 months)

Amortization expense for year 2017= $174000