Alpha Corporation acquired a patent for $60,000 which has an expected service life of five years and zero salvage value. The annual amortization is
A)$5,000.
B)$6,000.
C)$12,000.
D)$24,000.
E)$30,000.

Question

Quizplus · Accepted Answer

The annual amortization is calculated by dividing the cost of the patent by its expected service life. $60,000 / 5 years = $12,000 per year.

Alpha Corporation Acquired a Patent for $60,000 Which Has an Expected