Chapter 12, Problem 25Q

To determine

Conceptual introduction:

Amortization: If the intangible asset has definite useful life, then the initial cost of that intangible asset should write off over that useful life. This treatment of write off is known as amortization.

To determine the intangible amortization amount for 2017.

Given information: Estimated useful life = 30 years

Cost of asset as on January 1, 2007 = $540,000

Revised estimated useful life = 40 years