Amortization typically refers to the process of allocating the cost of long-term intangible assets used in the business over future periods.

1)

True.

2)

False.

On January 1, 2021, Fox Enterprises purchased equipment for $72,000. The equipment is expected to have a five-year life and a residual value of $6,000. Using the straight-line method, the book value on December 31, 2021would be:

1)

$57,600.

2)

$51,600.

3)

$58,800.

4)

$52,800.