Ask Question
11 May, 15:34

On May 10, 2015, Substantial Corporation spent $210,000 on a limited-life intangible asset. Its useful lifetime is 10 years. How much in total amortization expense should be recorded on the intangible asset by December 31, 2017

+4
Answers (1)
  1. 11 May, 15:52
    0
    The total amortization expense that should be recognised is $56000

    Explanation:

    Since the asset has a useful life of 10 years the amortization will be over a 10 year period. The annual amortization is $21000 (210000/10). The amortization will be apportioned for the year of 2015 since the asset was acquired in May. Effectively held for 8 months. thus 21000 x 8/12 = $14000. 2016 and 2017 will yield full amortized amounts of $21000. The total amortization expense on the asset will be 21000x2 + 14000 = $56000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On May 10, 2015, Substantial Corporation spent $210,000 on a limited-life intangible asset. Its useful lifetime is 10 years. How much in ...” 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