# Warriors Productions recently purchased a copyright. Although the copyright is expected to last a minimum of twenty-five years, the chief executive officer of the company believes this B-list movie will only be useful for the next fifteen years. Calculate the amortization expense and record the journal for the first year’s expense. The total cost of the copyright was $15,000. FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 #### Solutions Chapter Section FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 Chapter 11, Problem 10EA Textbook Problem 1 views ## Warriors Productions recently purchased a copyright. Although the copyright is expected to last a minimum of twenty-five years, the chief executive officer of the company believes this B-list movie will only be useful for the next fifteen years. Calculate the amortization expense and record the journal for the first year’s expense. The total cost of the copyright was$15,000.

To determine

Introduction:

The assets that do not have any physical appearance and cannot be seen or touched are known as intangible assets. However, future benefits are expected to arise from the use of such assets in the same manner as it is expected in case of tangible assets.

To calculate:

The amortization expense and to journalize the first-year expense.

### Explanation of Solution

Calculation of the amortized amount for the patents:

Substitute $15,000 for Purchase Cost of the Copyright and15 years for Estimated Useful Life in the above formula. Amortized Expense=$15,00015

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