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14 September, 02:57

Vinson Company purchased a patent for $180,000 at the beginning of Year8, and estimated that its expected useful life was 5 years from the purchase date. The patent has a legal life of 20 years. What amount should be recorded as amortization expense for the patent in Year8? a. $9,000 b. $36,000 c. $18,000 d. $72,000 e. $180,000

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  1. 14 September, 04:07
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    amortization expense is $36000

    Explanation:

    given data

    purchased = $180000

    time = 5 year

    to find out

    amount recorded as amortization expense

    solution

    we know here purchased patent for 180000 and here life is 5 years

    so here

    amortization expense will be purchased / time

    amortization expense = purchased / time

    amortization expense = 180000 / 5

    so amortization expense is $36000
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