Alpha Corporation Acquired a Patent for $60,000 Which Has an Expected

question 163

Multiple Choice

Alpha Corporation acquired a patent for $60,000 which has an expected service life of five years and zero salvage value. The annual amortization is

• A)$5,000.
• B)$6,000.
• C)$12,000.
• D)$24,000.
• E)$30,000.

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Definitions:

Chart of Accounts

A systematic list of accounts that a company uses for the organization of its financial transactions and to prepare financial statements.

Salaries Expense

The cost incurred by a company for the salaries of its employees.

Journal Entry

A record in accounting that notes the details of a financial transaction.

Posting Reference

An alphanumeric code or number used to identify the original journal entry in the ledger, facilitating the tracking of transactions and their origins in accounting records.