Calculating Amortization Expense

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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?

© BrainMass Inc. brainmass.com June 3, 2020, 10:49 pm ad1c9bdddf
https://brainmass.com/business/finance/amortization-expense-251097

Solution Preview

Amortization - 2006

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

Unamortized balance - ...

Solution Summary

This solution provides step by step calculations for amortization expense

$2.19