Question

current attempt in progress
these are selected 2027 transactions for indigo corporation:
jan. 1 purchased a copyright for $210,000. the copyright has a useful life of 6 years and a remaining legal life of 30 years.
mar. 1 purchased a patent with an estimated useful life of 5 years and a legal life of 24 years for $71,400.
sept. 1 purchased a small company and recorded goodwill of $152,450. its useful life is indefinite.
indicate the amount of amortization expense on december 31, 2027, for indigo corporation.
amortization expense $

Explanation:

Step1: Amortize Copyright

Copyright useful life = 6 years. Cost = $210,000. Annual amortization = $\frac{210000}{6}$ = $35,000. (Used 1 year in 2027.)

Step2: Amortize Patent

Patent purchased Mar 1, so used 10 months (Mar - Dec). Useful life = 5 years = 60 months. Cost = $71,400. Monthly amortization = $\frac{71400}{60}$ = $1,190. Total for 10 months = 1190 * 10 = $11,900.

Step3: Amortize Goodwill

Goodwill has indefinite life, so no amortization.

Step4: Total Amortization

Sum copyright and patent amortization: 35000 + 11900 = $46,900.

Answer:

46900