Chapter 11, Problem 11.4P

To determine

Amortization Amortization is an accounting technique used to periodically lower the book value of a loan or intangible assets over a set period of time. It is a process of writing down the value of intangible assets.

:Preparation of necessary entries to eliminate K’s investment in S’s account at the year-end 2015 and record the amortization on relevant items of cost in excess of book value.