Question

ABC Company purchases a patent on January 1, 2021, for $42,000 and the patent has an expected useful life of five years with no residual value. Assuming ABC Company uses the straight-line method, what is the amortization expense for the year ended December 31, 2022

Answer 1

Answer:

$8,400

Explanation:

Calculation for what is the amortization expense for the year ended December 31, 2022

Using this formula

Amortization expense=Patents/Expected useful life

Let plug in the formula

Amortization expense=$42,000 / 5 years

Amortization expense = $8,400

Therefore the amortization expense for the year ended December 31, 2022 will be $8,400