Ely Co. bought a patent from Baden Corp. on January 1, 2018, for $900,000. An independent...
Ely Co. bought a patent from Baden Corp. on January 1, 2018, for $900,000. An independent consultant retained by Ely estimated that the remaining useful life at January 1, 2018 is 15 years. Its unamortized cost on Baden's accounting records was $450,000; the patent had been amortized for 5 years by Baden. How much should be amortized for the year ended December 31, 2018 by Ely Co.?
A) $0. B) $45,000. C) $60,000. D) $90,000.
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Homework Answers
C) $60,000
Amount should be amortized for the year ended December 31, 2018 by Ely Co.:
= $900,000 / 15
= $60,000
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