Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15 ^th and the purchase price was $97,500. If the copyright has a remaining life of 75 months, what is the total amortization amount Jorge may deduct during the current year? (Assume this is not an asset acquisition to which §197 applies.) A)$0 B)$7,150 C)$7,800 D)$15,600 E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The total amortization amount for the copyright is calculated as follows:
Amortization per month = Purchase Price / Remaining life in months
= $97,500 / 75
= $1,300
Since the purchase occurred on July 15, there are only 5.5 months left in the year (July 15 to December 31). Therefore, the total amortization amount Jorge may deduct during the current year is:
Amortization for the current year = Amortization per month x Remaining months in the year
= $1,300 x 5.5
= $7,150
Thus, the correct answer is (C) $7,800.

Jorge Purchased a Copyright for Use in His Business in the Current