A company purchases a trademark for $480,000. The trademark has a legal life of 15 years, but management estimates its economic life to be 8 years. What would be the annual amortization expense, and what journal entry should be recorded?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 10PB: For each of the following unrelated situations, calculate the annual amortization expense and...
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Hii expert please provide answer general accounting question

A company purchases a trademark for $480,000. The
trademark has a legal life of 15 years, but management
estimates its economic life to be 8 years. What would be
the annual amortization expense, and what journal entry
should be recorded?
Transcribed Image Text:A company purchases a trademark for $480,000. The trademark has a legal life of 15 years, but management estimates its economic life to be 8 years. What would be the annual amortization expense, and what journal entry should be recorded?
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