Question
GHILtdacquiredapatentfor$80,000onJanuary1st,2023.Thepatenthasausefullifeof 10 years. Calculate the annual amortization expense using the straight-line method. Also, determinethecarryingamountofthepatentattheendofthethirdyear.
GHI Ltd acquired a patent for $80,000 on January 1st, 2023. The patent has a useful life of 10 years. Calculate the annual amortization expense using the straight-line method. Also, determine the carrying amount of the patent at the end of the third year.
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Survey of Accounting
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
5th edition
1259631125, 978-1259631122
