Question

Kow-Pow Company purchased an intangible asset for $180,000 on May 1, 2017. 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, 2019

Answer 1

Amortization Expenses = $48,000

Step-by-step explanation:

Amortization Expenses = $180,000/10 years = $18,000

May 2017 = $12,000 ($18,000 *8/12)

December 2018 = $18,000

December 2019 = $18,000

Amortization Expenses = $48,000