the patent is 8 years. During the year 2021, the company determined that the economic life of the patent is only 6 years from the date of acquisition. How much is the amortization expense for year 2021?

the patent is 8 years. During the year 2021, the company determined that the economic life of the patent is only 6 years from the date of acquisition. How much is the amortization expense for year 2021?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9PA: For each of the following unrelated situations, calculate the annual amortization expense and...

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

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On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of
the patent is 8 years. During the year 2021, the company determined that the economic life of
the patent is only 6 years from the date of acquisition. How much is the amortization expense
for year 2021?

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