On January 2, 2017, SilverCorp. bought a trademark from Lake Inc. for $150,000. An independent research company estimated that the remaining useful life of the trademark was 30 years. At this time, the trademarks net book value in Lakes records was $210,000. Because the trademark had a demonstrated limited life beyond 20 years, Silver decided to amortize the trademark over the maximum period, straight-line with no residual. In Silvers (calendar) 2017 income statement, what amount should be reported as amortization expense for this trademark? On January 1, 2017, Muhlenberg Corp. bought a trademark from Glasgow Corp. for $160,000. An independent consultant retained by Muhlenberg estimated that the remaining useful life is 50 years. The trademarks carrying value on Yarmouths books was $61,000. Muhlenberg decided to write off the trademark over the maximum period allowed. How much should be amortized for the year ended December 31, 2017?

 

 

 

 

 

Answer rating: 100% (QA)

For both scenarios a trademark was purchased and based on its remaining useful life the companies de... View the full answer