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berry co. purchases a patent on january 1, 2021, for $30,000 and the patent has an expected useful life of five years with no residual value. assuming berry co. uses the straight-line method, what is the amortization expense for the year ended december 31, 2022?

Answer :

$6000 is the amortization expense for the year ended December 31, 2022 if  the patent has an expected useful life of five years with no residual value.

purchase cost a patent on january 1, 2021= $30,000

expected useful life = 5 years

$30000/5years =$6000 amortization per year

$6000 is the amortization expense for the year ended December 31, 2022.

Amortization expenses reflect the cost of long-term assets (such as computers and vehicles) over their useful life. They show up on a company's income statement as depreciation expenses.

In business, amortization is the practice of depreciating the value of an intangible asset, such as a patent or a copyright, over the course of its useful life. Amortization expenses can have an impact on a company's income statement, balance sheet, and tax liability.

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