Use the Following to Answer Questions

question 139

Short Answer

Use the following to answer questions
On January 1,2016,the Vanguard Company purchased a copyright for $12,000.Vanguard estimated the remaining useful life of the copyright to be 6 years.
-Which of the following correctly shows the effect of the first year's amortization of Vanguard's copyright?

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Definitions:

Investment Turnover

It is a ratio used to measure the efficiency of a company in generating sales from its investments in assets.

Operating Income

A company's profit after deducting operating expenses such as wages and cost of goods sold, but before interest and taxes.

Residual Income

The net income an entity generates above its cost of capital, effectively measuring excess profits that exceed the minimum expected return.

Divisional Operating Income

The earnings generated from the operations of a specific division within a company, excluding costs and income from other divisions or corporate activities.