E11A

Amortization of Copyrights and Trademarks

Complete the following requirements regarding amortizing copyrights and trademarks: 1. Argyle Publishing Company purchased the copyright to a basic computer textbook for $40,000. The usual life of a textbook is about four years. However, the copyright will remain in effect for another 50 years. Calculate the annual amortization of the copyright. 2. Accounting Connection Scion Company purchased a trademark from a well known supermarket for $320,000. The companys management argued that the trademarks useful life was indefinite. Explain how the cost should be accounted for.