× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
lodidodiclaudie lodidodiclaudie
wrote...
Posts: 314
Rep: 0 0
5 years ago
An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2006, for $540,000. On January 1, 2016, a review was made of intangible assets and their expected service lives. It was determined that this asset had an estimated useful life of 30 more years from the date of the review. What is the amount of amortization for this intangible in 2016?
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
Authors:
Read 63 times
2 Replies

Related Topics

Replies
wrote...
#1
5 years ago
 The total life, per revised facts, is 40 years (10 + 30). There are 30 (40 - 10) remaining years for amortization purposes. Original amortization: $540,000 / 30 years = $18,000 per year; $18,000  10 years expired = $180,000 accumulated amortization.  Now, in 2016, the remaining useful life is 30 years and the remaining cost to be amortized is $360,000 ($540,000 - 180,000). Therefore, the amortization for 2016 and years thereafter is $360,000 / 30 = $12,000.
 
wrote...
#2
5 years ago
Electric Light Bulb Correct, thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1321 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 1090
  
 6911
  
 186
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4
Previous poll results: What's your favorite math subject?