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On January 2, 2023, Blossom Corp. bought a trademark from Cullumber Inc. for $117000. An independent research company estimated that the remaining useful life
On January 2, 2023, Blossom Corp. bought a trademark from Cullumber Inc. for $117000. An independent research company estimated that the remaining useful life of the trademark was 25 years. At this time, the trademark's net book value in Cullumber's records was $174000. Because the trademark had a demonstrated limited life beyond 25 years, Blossom decided to amortize the trademark over the maximum period, straight-line with no residual. In Blossom's (calendar) 2023 income statement, what amount should be reported as amortization expense for this trademark? 0000 $6492 $6960 $4680 $5850
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