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On January 2, 2025, Blossom Co. bought a trademark from Rice, Inc. for $1420500. An independent research company estimated that the remaining useful life of
On January 2, 2025, Blossom Co. bought a trademark from Rice, Inc. for $1420500. An independent research company estimated that the remaining useful life of the trademark was 10 years. Its unamortized cost on Rice's books was $1704600. Blossom expects that the trademark will produce 25% of its cash flows in year 1, 20% in year 2, 15% in year 3, and 10% in the remaining years. In Blossom's 2025 income statement, what amount should be reported as amortization expense?
274100
355125
236750
142050
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