Complete the following requirements regarding amortizing copyrights and trademarks:
1. Argyle Publishing Company purchased the copyright to a basic computer textbook for $40,000. The usual life of a textbook is about four years. However, the copyright will remain in effect for another 50 years. Calculate the annual amortization of the copyright.
2. Scion Company purchased a trademark from a well-known supermarket for $320,000. The company’s management argued that the trademark’s useful life was indefinite. Explain how the cost should be accounted for.