Option (c) is correct
Copyright will be amortized over its useful life of 4 years.
Yearly amortization expense = Cost / Useful life
Yearly amortization expense = $320000 / 4 = $80000
In 2017, copyright was used for 6 months (i.e. July to December), so it will be amortized for 6 months in 2017.
Amortization expense for 2017 = $320000 / 4 * 6 / 12 = $40000
on July 1, 2017, Crane Company purchased the copyright to Blue Spruce Corp. for $320000. It...
Question 79 On May 1, 2017, Crane Company purchased the copyright to Pronghorn Corp. for $90000. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be $12000. $11250. $15000. $22500.
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