Question
Microsoft Corporation Data for the year ended December 31, 2023: Item Amount Intangible Assets Cost $3,000,000 Accumulated Amortization $1,200,000 Estimated Remaining Useful Life 4 years
Microsoft Corporation Data for the year ended December 31, 2023:
Item | Amount |
Intangible Assets Cost | $3,000,000 |
Accumulated Amortization | $1,200,000 |
Estimated Remaining Useful Life | 4 years |
Annual Amortization Expense | $450,000 |
- Calculate the book value of intangible assets.
- Determine the new amortization expense if the remaining useful life is reduced to 3 years.
- Discuss the financial statement impact of this change in estimate.
- Explain the significance of the Conservatism Principle in amortization.
- How should the company record the change in amortization expense?
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Accounting Theory Conceptual Issues in a Political and Economic Environment
Authors: Harry Wolk, James Dodd, John Rozycki
8th edition
1412991692, 978-1412991698
