Ask Question
BusinessBusiness
23 November, 02:58

Jorge purchased a patent for use in his business in the current year. The purchase occurred on July 15th and the purchase price was $75,000. If the patent has a remaining life of 75 months, what is the total amortization expense Jorge may deduct during the current year?

+3
Answers (1)
  1. 23 November, 03:17
    0
    The patent amortization expense that Jorge may deduct in the current year is $6000

    Explanation:

    Jorge purchased the patent in the 7th month of the year, from 7th till the end of year gives a total of 6 months, in other words, Jorge is able to amortize 6 months of patent in the year of purchase.

    Patent amortization expense=patent value*applicable months in the year/useful life of the patent

    patent value is $75000

    applicable months in the year is 6

    useful life is 75 months

    Patent amortization expense=$75000*6/75

    Patent amortization expense=$6000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Jorge purchased a patent for use in his business in the current year. The purchase occurred on July 15th and the purchase price was ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
In 2019, Brazil's trade deficit as share of GDP widened. In that year, government deficit as share of GDP declined and investment as share of GDP remained constant. What must have happened to private savings as share of GDP?
Answers (1)
What is the largest level of organization for the environment?
Answers (1)
Which of the following expenses is not an operating expense? A. utilities B. Property taxes C. Management D. Mortgage payment E. Advertising
Answers (1)
It costs a meat-processing company $50,000 to produce 5,000 pounds of steak. the company's cost will be $50,009 if it produces an additional pound of steak. if the company produces 5,001 pounds of steak then
Answers (1)
Lindor and Sons purchased an available-for-sale investment for $800,000. The fair value of that investment is $750,000 at the end of the current fiscal year. The company's total net income for the year is approximately $2,500,000.
Answers (1)
New Questions in Business
Identify the internal control principle that is applicable to each procedure. The following reconciling items are applicable to the bank reconciliation for Ellington Company: (1) outstanding checks, (2) bank debit memorandum for service charge, (3)
Answers (1)
Valera Corporation makes a product with the following standards for labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.4 hours $ 21.00 per hour $ 8.40 Variable overhead 0.4 hours $ 6.
Answers (1)
Which of the following are tasks associated with business administration positions? a. answering phones b. designing goods for production c. delivering goods to markets d. maintaining records e. repairing computers
Answers (1)
Pepe, Incorporated acquired 60% of Devin Company on January 1, 2017. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years.
Answers (1)
Which statement is incorrect? a. Dividends represent a distribution by a corporation to its stockholders. b. Dividends are shown on the income statement. c. Dividends reduce stockholders' equity, thus the Dividends account increases on the left side.
Answers (1)
Home » Business » Jorge purchased a patent for use in his business in the current year. The purchase occurred on July 15th and the purchase price was $75,000.
Sign Up Forgot Password?