- balance transfer rates
- patent agents
AAA purchased a patent from XXX Co. for $357,000 on January 1, 2013. The patent was being amortized over its remaining legal life of 15 years, expiring on January 1, 2028. At the beginning of 2016, AAA determined that the economic benefits of the patent would not last longer than 10 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2016?
The correct answer is $244,800, but I keep getting an answer of $112,200. This is how I solved for it:
Amortization expense for 2013-2015
(357,000/15) x 3 = 71400
Amortization expense for 2016
(357,000-71400)/7 = 40800
Accumulated amortization
71400 + 40800 = 112,200
What have I done wrong?
The correct answer is $244,800, but I keep getting an answer of $112,200. This is how I solved for it:
Amortization expense for 2013-2015
(357,000/15) x 3 = 71400
Amortization expense for 2016
(357,000-71400)/7 = 40800
Accumulated amortization
71400 + 40800 = 112,200
What have I done wrong?
The answer to this short amortization problem?
没有评论:
发表评论