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25 October, 17:45

Berry Co. purchases a patent on January 1, 2021, for $33,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the amortization expense for the year ended December 31, 2022?

a. $0.

b. $33,000.

c. $6,600.

d. $13,200.

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Answers (1)
  1. 25 October, 17:57
    0
    The correct answer is C.

    Explanation:

    Giving the following information:

    Berry Co. purchases a patent on January 1, 2021, for $33,000 and the patent has an expected useful life of five years with no residual value.

    Annual depreciation = (original cost - salvage value) / estimated life (years)

    Annual depreciation = 33,000/5 = $6,600
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