Answer:
Annual amortization= $62,291.67
Explanation:
Giving the following information:
Purchase price= $897,000
Smitty plans to reproduce 1.8 million posters of the artwork for 12 years.
To calculate the amortization, we need to use the following formula:
Annual amortization= (original cost/total estimated production)*production for the year
Annual amortization= (897,000/1,800,000)*125,000
Annual amortization= $62,291.67
