Question
On August 1, 20X1, Theta Corporation acquired a copyright for $150,000 cash. The copyright has a useful life of 5 years. Using the straight-line method,
On August 1, 20X1, Theta Corporation acquired a copyright for $150,000 cash. The copyright has a useful life of 5 years. Using the straight-line method, calculate the amortization expense for the year 20X1.
Additionally, Theta Corporation made the following transactions during 20X1:
- September 15: Paid $12,000 for legal fees related to the acquisition of the copyright.
- November 1: Purchased additional copyrighted material for $30,000.
Required:
- Calculate the total amortization expense for the year 20X1 for the copyright.
- Prepare the journal entries to record the copyright-related transactions for Theta Corporation during the year 20X1.
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Managerial Accounting The Cornerstone of Business Decision Making
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
7th edition
978-1337116008, 1337116009, 1337115770, 978-1337516150, 1337516155, 978-1337115773
