Fenimore Company purchased a copyright from another company early in 2020 for $50,000. Fenimore had not amortized

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Fenimore Company purchased a copyright from another company early in 2020 for $50,000. Fenimore had not amortized the copyright because its value had not been diminished. The copyright has a useful life at purchase of 20 years.

Why is this not treated prospectively and is instead treated respectively?

Is this considered as a change in accounting policy, change in accounting estimate, or an accounting error?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0176509736

10th Canadian Edition, Volume 1

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

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Posted Date: Nov 22, 2022 12:02 AM

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Fenimore Company purchased a copyright from another company early in 2020 for $50,000. Fenimore had not amortized

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SOLUTION Date Account Titles Explanation 2020 Amortization Expense 50000... View the full answer

Intermediate Accounting

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