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On July 1, 2015, ABC Corporation purchased a smaller company in the same industry. As part of the acquisition, ABC recorded a patent asset for
On July 1, 2015, ABC Corporation purchased a smaller company in the same industry. As part of the acquisition, ABC recorded a patent asset for $38,400 and a trademark asset for $17,600. The patent expires in 2033, but ABC has concluded that its economic useful life is 12 years from the purchase date. The trademark has an indefinite life. How much amortization expense should ABC recognize for these intangible assets in calendar year 2015? a. $2,333 b. $3,200 c. $1,600 d. $4,667
On July 1, 2015, ABC Corporation purchased a smaller company in the same industry. As part of the acquisition, ABC recorded a patent asset for $38,400 and a trademark asset for $17,600. The patent expires in 2033, but ABC has concluded that its economic useful life is 12 years from the purchase date. The trademark has an indefinite life. How much amortization expense should ABC recognize for these intangible assets in calendar year 2015?
a.
$2,333
b.
$3,200
c.
$1,600
d.
$4,667
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