Charco purchased a franchise from Burger Master on January 1, 2021, for $240,000. The franchise agreement allows Charco to sell hamburgers and other related food items using the Burger Master name for a period of six years. Assuming Charco uses the straight-line method, what is the amortization expense for the year ended December 31, 2021?

1. $240,000.
2. $40,000.
3. $0.
4. $28,000

Answer rating: 100% (QA)

Solution Amortization expen... View the full answer