3. Charco purchased a franchise from Burger Master on January 1, 2021, for $240,000. The franchise...
3. Charco purchased a franchise from Burger Master on January 1, 2021, for $240,000. The franchise agreement allows Charco to sell hamburgers and other related food items using the Burger Master name for a period of six years. Assuming Charco uses the straight-line method, what is the amortization expense for the year ended December 31, 2021?
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$240,000.
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$40,000.
-
$0.
-
$28,000.
Homework Answers
Amortization expense for December 31, 2021 = cost / life
= $240000 / 6
= $40,000
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