Peck Tech purchased a trademark on 1 July 2017 for $240 000. Economic benefits were expected for 8 years, but the trademark's legal life was 15 years. Also, during 2017/18, Peck's incurred research and development costs of $150,000. The carrying amount of the trademarks on 30 June 2018, is: a. $300,000 b. $210,000 c. $262,500 d. $360,000

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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Peck Tech purchased a trademark on 1 July 2017 for $240 000.
Economic benefits were expected for 8 years, but the trademark's
legal life was 15 years. Also, during 2017/18, Peck's incurred research
and development costs of $150,000. The carrying amount of the
trademarks on 30 June 2018, is:
a. $300,000
b. $210,000
c. $262,500
d. $360,000
Transcribed Image Text:Peck Tech purchased a trademark on 1 July 2017 for $240 000. Economic benefits were expected for 8 years, but the trademark's legal life was 15 years. Also, during 2017/18, Peck's incurred research and development costs of $150,000. The carrying amount of the trademarks on 30 June 2018, is: a. $300,000 b. $210,000 c. $262,500 d. $360,000
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