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    Calculating Amortization Expense

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    Kerr Company purchased a patent on January 1, 2006 for $180,000. The patent had a remaining useful life of 10 years at that date. In January of 2007, Kerr successfully defends the patent at a cost of $81,000, extending the patent's life to 12/31/18. What amount of amortization expense would Kerr record in 2007?

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    Amortization - 2006

    Cost / Useful life
    $180,000 / 10 years
    = $18,000

    Unamortized balance - ...

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    This solution provides step by step calculations for amortization expense