Exercise - Amortization of Intangible Assets
Minstrel Music purchased the copyright to a song for $248,000 on July 1. The copyright protects the owners' legal rights for the next 20 years, but producers at Minstrel estimate they will only be able to use the copyright for the next 15 years. Minstrel Music Productions uses the straight-line method of amortization and has a June 30 year-end.
Required:
Prepare the journal entry to record amortization expense for the first year. If required, round your answers to nearest whole value.