Topic-8 Property Acquisition and Cost Recovery
18 Pages

Topic-8 Property Acquisition and Cost Recovery

Course Number: ACC 448, Spring 2012

College/University: Marshall

Word Count: 3624

Rating:

Document Preview

Topic 8 - Property Acquisition and Cost Recovery Topic8 Property Acquisition and Cost Recovery 1. Explain the reasoning why the tax laws require the cost of certain assets to be capitalized and recovered over time rather than immediately expensed. Assets with an expected life of more than one year must be capitalized and recovered through depreciation, amortization, or depletion deductions depending on the type...

Unformatted Document Excerpt
Coursehero >> West Virginia >> Marshall >> ACC 448

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

8 Topic - Property Acquisition and Cost Recovery Topic8 Property Acquisition and Cost Recovery 1. Explain the reasoning why the tax laws require the cost of certain assets to be capitalized and recovered over time rather than immediately expensed. Assets with an expected life of more than one year must be capitalized and recovered through depreciation, amortization, or depletion deductions depending on the type of underlying asset. The policy attempts to match the revenues and expenses for these assets because the assets have a useful life of more than one year. 2. Explain the differences and similarities between personal property, real property, intangible property, and natural resources. Also, provide an example of each type of asset. Personal property, real property, and natural resources are all tangible property than can be seen and touched. Natural resources are assets that occur naturally (e.g. timber or coal). Real property is land and all property that is attached to land (e.g. buildings). Personal property is all tangible property that is not a natural resource or real property. Intangibles are all intellectual property rights (e.g. patents and copyrights) and any other value not assigned as a tangible assets during a purchase (e.g. goodwill). Each of these has an expected useful life of more than one year. Asset Type Personal property Real property Intangibles Natural Resources 3. Examples Automobiles, equipment, furniture, and machinery Land and items attached to land such as buildings (warehouse, office building, and residential dwellings) Start-up and organizational costs, copyrights, patents, covenants not to compete and goodwill Commodities such as oil, coal, copper, timber, and gold Explain the similarities and dissimilarities between depreciation, amortization, and depletion. Describe the cost recovery method used for each of the four asset types (personal property, real property, intangible property, and natural resources). There are three types of cost recovery: depreciation, amortization, and depletion. Each is similar in that they recover the cost basis of long-lived 9-1 Topic 8 - Property Acquisition and Cost Recovery assets. Depreciation for real property, amortization, and cost depletion are on a straight-line basis. (Taxpayers may elect straight-line on tangible personal property as well.) The primary difference is that they are used for property with unique characteristics. Depreciation of tangible personal property is done on an accelerated (most often double-declining balance) method. Percentage depletion assigns a statutory rate that may recover more than the original cost of the asset. Asset Type Personal property Real property Intangibles Natural Resources 4. Cost Recovery Type, Characteristics MACRS depreciation, characterized by double declining balance method (although 150% DB or straight-line may be elected), half-year convention (although mid-quarter may be required), and shorter recovery periods. MACRS depreciation, characterized by straight-line method, mid-month convention, and longer recovery periods. Amortization, characterized by straight-line method, full-month convention, various recovery periods (usually not based on actual life) depending on intangible type. Depletion (cost or percentage), cost depletion allocates the cost of a natural resource based on resource estimates (tons, ounces, barrels, etc.), straight-line method, based on actual extraction quantities, percentage depletion allocates a statutory expense (depending on resource type) based on gross income, but limited to 50% of net income, and is the only cost recovery method that allows a taxpayer to recover more than the original basis of an asset. Is an assets initial or cost basis simply its purchase price? Explain. The initial basis of any purchased business asset is historical cost. This is generally the purchase price, plus any other expenses (e.g. sales tax and installation costs) incurred to get the asset in working condition. This does not include costs which substantially improve or extend the life of an asset such as a building addition. 5. Compare and contrast the basis of property acquired via purchase, conversion from personal use to business or rental use, a nontaxable exchange, gift, and inheritance. The basis of purchased assets is historical cost. The basis rules for other acquisitions depend on whether the transaction was taxable or not. For 9-2 Topic 8 - Property Acquisition and Cost Recovery taxable transactions there is usually a step-up in basis to fair market value. For non-taxable transactions, there is usually a carryover basis. Conversion of assets from personal use gets the lesser of the two values. The specific rules are as follows: Acquisition Type Purchase Conversion from personal use Non-taxable exchange Gift Inheritance 6. Basis Rules The initial basis is historical cost, plus all costs incurred to get the asset to its destination and in working order. The depreciable basis would be the lesser of the fair market value of the asset on the date of conversion or the adjusted basis of the transferor. The basis is a carryover basis of the transferor since there is no recognition of gain or loss on the transfer (not a taxable transaction). The basis is generally a carryover basis, because these transactions usually arent taxable. If gift tax is paid, the basis may be increased by a portion of the gift tax paid. The basis is the fair market value on the date of death or the alternate valuation date six months later (if elected by the estate). The fair market value is used because the transfer arises from a taxable transaction. Explain why the expenses incurred to get an asset in place and operable should be included in the assets basis. Additional expenses, including sales tax, shipping, installation costs, and the like are capitalized into an assets basis because all costs required to place an asset into service are required to be included into its basis. That is, without these costs, the taxpayer would not be able to place in service or use the asset in a business. 7. Graber Corporation runs a long-haul trucking business. Graber incurs the following expenses: replacement tires, oil changes, and a transmission overhaul. Which of these expenditures may be deducted currently and which must be capitalized? Explain. An expense that extends the useful life of an asset will be capitalized as a new assetdepreciated over the same MACRS recovery period of the original asset rather than the remaining life of the existing asset. Alternatively, expenses that constitute routine maintenance should be expensed immediately. An engine overhaul is likely to be a capitalized expense. Tires and oil changes are likely to be expensed currently. However, all expenses are subject to a facts and circumstances test. 9-3 Topic 8 - Property Acquisition and Cost Recovery 8. MACRS depreciation requires the use of a recovery period, method, and convention to depreciate tangible personal property assets. Briefly explain why each is important to the calculation. MACRS depreciation calculations are straightforward once you know the recovery period (life), method, and convention for the asset. Recovery period is the statutory life or the period over which a taxpayer will allocate the depreciation expense. Profitable taxpayers prefer the recovery period to be as short as possible so that they may recoup the basis as quickly as possible. The method is generally the double-declining (200% DB) method. However, taxpayers may elect to use either the 150% DB method (useful if they are subject to AMT, to avoid calculating both regular and AMT depreciation) or straight-line method (to lengthen depreciation expense for taxpayers in an expiring NOL situation). The convention determines how much depreciation is taken in both the year of acquisition and the year of disposition. The half-year convention is used to simplify calculating depreciation based on the number of days an asset was owned during the year, but the mid-quarter convention is required if more than 40% of the tangible personal property placed in service during the year was placed in service during the fourth quarter. 9. Can a taxpayer with very little current year income choose to not claim any depreciation expense for the current year and thus save depreciation deductions for the future when the taxpayer expects to be more profitable? Taxpayers must reduce the basis of depreciable property by the depreciation allowed or allowable (1011). Therefore, taxpayers must reduce their basis whether or not they claim the depreciation expense. As a result, taxpayers are better off taking the depreciation expense even if it creates a net operating loss or is taxed at a relatively low marginal tax rate. 10. What depreciation methods are available for tangible personal property? Explain the characteristics of a business likely to adopt each method. Taxpayers may elect to use the 200% DB, 150% DB, or the straight-line method for tangible personal property. It is important to note that all three methods allow the same depreciation expense over the same recovery period. Nevertheless, profitable taxpayers will elect to use the 200% DB method because it minimizes the after-tax cost of the asset by maximizing the present value of the depreciation expensesthrough accelerating the depreciation expenses. Taxpayers traditionally subject to the AMT may elect to use the 150% DB method because it saves them the administrative inconvenience of calculating depreciation under both methods when the resulting expense under the 150% DB method required by AMT. Taxpayers 9-4 Topic 8 - Property Acquisition and Cost Recovery may elect to use the straight-line method if they want to slow down depreciation expense 9-5 Topic 8 - Property Acquisition and Cost Recovery which is counterintuitive but often occurs for companies that regularly incur NOLs and would like to preserve these losses for a time when they expect profitability or will be acquired by another taxpayer that may be able to utilize the NOLs. Problems 11. Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $24,500. In addition, Jose incurred the following expenses before using the van: shipping costs of $650; paint to match the other fleet vehicles at a cost of $1,000; registration costs of $3,200 which included $3,000 of sales tax and a registration fee of $200; wash and detailing for $50; and an engine tune-up for $250. What is Joses cost basis for the delivery van? $29,150, cost basis in the delivery van, computed as follows: Amount Explanation* $24,500 650 1,000 3,000 $29,150 Business preparation cost Business preparation cost Business preparation cost Description Purchase price Shipping costs Paint Sales tax Total cost basis *Note that the registration fee, washing and detailing, and engine tune-up are costs that repairs and maintenance or that are not required to be capitalized. 12. Emily purchased a building to store inventory for her business. The purchase price was $760,000. Beyond this, Emily incurred the following necessary expenses to get the building ready for use: $10,000 to repair the roof, $5,000 to make the interior suitable for her finished goods, and $300 in legal fees. What is Emilys cost basis in the new building? $765,300 cost basis, computed as follows: Amount Explanation Description Purchase price Improvements Legal fees $760,000 5,000 300 Business preparation costs Business preparation costs 9-6 Topic 8 - Property Acquisition and Cost Recovery Cost basis in building $765,300* *Note that the $10,000 repair for the roof was not capitalized. The repair is likely a routine maintenance expenditure rather than a capitalized cost. However, if the expense improved or prolonged the life of the asset beyond what would be considered maintenance to keep it in its working condition, it would be capitalized. 13. Dennis contributed business assets to a new business in exchange for stock in the company. The exchange did not qualify as a nontaxable exchange. The fair market value of these assets was $287,000 on the contribution date. Denniss original basis in the assets he contributed was $143,000, and the accumulated depreciation on the assets was $78,000. a. What is the businesss basis in the assets it received from Dennis? b. What would be the businesss basis if the transaction qualified as a nontaxable exchange? a. Because this exchange is a fully taxable transaction, the businesss basis in Denniss assets is the $287,000 fair market value of the assets. b. If the transaction qualified as a nontaxable exchange, the business would take the same adjusted basis in the assets that Dennis had. That is, the business will receive a exchanged basis of $65,000 ($143,000 original basis minus accumulated depreciation of $78,000) in the assets. 14. Brittany started a law practice as a sole proprietor. She owned a computer, printer, desk, and file cabinet she purchased during law school (several years ago) that she is planning to use in her business. What is the depreciable basis that Brittany should use in her business for each asset, given the following information? Asset Computer Printer Desk File cabinet Purchase Price $2,500 $300 $1,200 $200 FMV at Time Converted to Business use $800 $150 $1,000 $225 The basis of assets converted from personal use to business use is the lesser of (1) fair market value on date of conversion or (2) basis on the date of conversion. The basis of each is asset as follows: 9-7 Topic 8 - Property Acquisition and Cost Recovery (1) (2) Lesser of FMV Basis on Date of (1) or (2) Conversion Depreciable Basis $2,500 $300 $1,200 $200 $800 $150 $1,000 $200 Asset Computer Printer Desk File cabinet $800 $150 $1,000 $225 15. Meg OBrien received a gift of some small-scale jewelry manufacturing equipment that her father had used for personal purposes for many years. Her father originally purchased the equipment for $1,500. Because the equipment is out of production and no longer available, the property is currently worth $4,000. Meg has decided to begin a new jewelry manufacturing trade or business. What is her depreciable basis for depreciating the equipment? The basis of a gift is a carryover basis from the donor. Therefore Megs depreciable basis in the property is $1,500. Comprehensive Problems 16. Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming. In the process of doing so, TM has acquired various types of assets. Below is a list of assets acquired during 2009: Asset Office equipment Machinery Used delivery truck* Cost $10,000 $260,000 $15,000 Date Place in Service 02/03/2009 07/22/2009 08/17/2009 *Not considered a luxury automobile, thus not subject to the luxury automobile limitations 9-8 Topic 8 - Property Acquisition and Cost Recovery During 2009, TM had huge success (and had no 179 limitations and Steve acquired more assets the next year to increase its production capacity. These are the assets which were acquired during 2010: Asset Computers & Info. System Luxury Auto** Assembly Equipment Storage Building Cost $40,000 $80,000 $175,000 $400,000 Date Place in Service 03/31/2010 05/26/2010 08/15/2010 11/13/2010 **Used 100% for business purposes. TM did extremely well during 2010 by generating a taxable income before any 179 expense of $432,500. Required A. Compute 2009 depreciation deductions including 179 expense (ignoring bonus depreciation). B. Compute 2010 depreciation deductions including 179 expense (ignoring bonus depreciation). C. Compute 2010 depreciation deductions including 179 expense (ignoring bonus depreciation), but now assume that Steve acquired a new machine on October 2nd for $300,000 plus $20,000 for delivery and setup costs. D. Ignoring part c, now assume that during 2010, Steve decides to buy a competitors assets for a purchase price of $350,000. Steve purchased the following assets for the lump-sum purchase price. Asset Inventory Office furniture Machinery Patent Goodwill Building Land E. Cost $20,000 $30,000 $50,000 $98,000 $2,000 $130,000 $20,000 Date Placed in Service 09/15/2010 09/15/2010 09/15/2010 09/15/2010 09/15/2010 09/15/2010 09/15/2010 Complete Part I of Form 4562 for part b. a) 2009 depreciation is $255,858. Description Sec. 179 Expense Cost 9-9 MACRS Basis Current Expense EOY Topic 8 - Property Acquisition and Cost Recovery 10,00 Office Equipment 0 10,00 260,00 Machinery - 0 0 240,00 0 20,00 0 250,00 0 8 3,00 0 285,00 Totals 242,85 8 15,00 0 0 2,85 0 15,00 Used Delivery Truck 10,00 - 3,00 0 35,00 0 5,85 0 255,85 8 8 b) 2010 depreciation is $228,942. Description Sec. 179 Expense MACRS Basis Current Expense - Cost - 10,00 Office Equipment 0 260,00 Machinery 20,00 0 15,00 Used Delivery Truck 40,00 40,00 0 80,00 2,96 0 175,00 0 0 175,00 175,00 - 0 400,00 0 400,00 0 1,28 0 980,00 Totals 40,00 - 80,00 Storage Building 0 0 0 Assembly Equipment 4,80 0 0 Luxury Auto 8 15,00 0 Computers & Info. System 4,89 0 0 215,00 0 4 515,00 228,94 0 2 c) 2010 depreciation is $299,184. Description Office Equipment Machinery Used Delivery Truck Computers & Info. System Luxury Auto Cost Sec. 179 Expense 10,00 Additions 10,00 0 MACRS Basis Current Expense - 0 260,00 240,00 0 0 20,00 0 15,00 4,89 8 15,00 0 0 40,00 4,80 0 40,00 0 0 80,00 14,00 0 80,00 0 0 9-10 2,96 0 Topic 8 - Property Acquisition and Cost Recovery 175,00 Assembly Equipment 175,00 0 0 300,00 New Machine 0 20,00 250,00 0 70,00 0 0 400,00 Storage Building 0 1,280,00 0 20,00 500,00 0 800,00 0 Office Equipment 0 Computers & Info. System Luxury Auto Assembly Equipment Storage Building Goodwill Building Land Totals - 20,00 15,00 0 40,00 0 80,00 0 175,00 175,00 - 400,00 175,00 0 400,00 0 0 1,28 4 n/a 30,00 30,00 45,00 0 - 0 50,00 30,00 0 5,00 0 45,71 5 98,00 98,00 0 0 2,17 8 2,00 2,00 0 0 130,00 4 4 130,00 0 0 20,00 97 4 n/a 0 1,330,00 0 2,96 0 0 0 8,00 0 80,00 0 0 4,80 0 40,00 0 0 4,89 8 15,00 0 0 Office Furniture 0 20,00 Inventory Current Expense 240,00 0 500,00 0 e) Complete Part I of Form 4562 for part b. 9-11 - 790,00 0 275,85 2 299,18 4 MACRS Factor 0 0 Used Delivery Truck Patent 10,00 0 260,00 Machinery Machinery Sec. 179 Expense 10,00 Cost 1,28 4 d) 2010 depreciation is $275,584. Description 252,49 9 400,00 0 Totals 18,74 3 Topic 8 - Property Acquisition and Cost Recovery 17. While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a business called ISys Answers which was a technology support company. During year 1, they bought the following assets and incurred the following fees at start up: Year 1 Assets Computers (5-year) Office equipment (7-year) Furniture (7-year) Start-up costs Purchase Date October 30, Y1 October 30, Y1 October 30, Y1 October 30, Y1 Basis $15,000 $10,000 $3,000 $7,000 In April of year 2, they decided to purchase a customer list from a company started by fellow information systems students preparing to graduate who provided virtually the same services. The customer list cost $10,000 and the sale was completed on April 30th. During their summer break, Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury auto) and a pinball machine (to help attract new employees). They bought the van on June 15, Y2 for $15,000 and spent $3,000 getting it ready to put into service. The pinball machine cost $4,000 and was placed in service on July 1, Y2. Year 2 Assets Van Pinball Machine (7-year) Customer List Purchase Date June 15, Y2 July 1, Y2 April 30, Y2 Basis $18,000 $4,000 $10,000 Assume that ISys Answers does not elect any 179 expense or bonus depreciation. Also assume that Y1 is 2008 and Y2 is 2009. a. What are the maximum cost recovery deductions for ISys Answers (excluding 179 expensing) for 2008 and 2009? b. What is ISys Answers basis in each of its assets at the end of 2008 and 2009? a. ISys Answers Y1 cost recovery deductions are $6,247, including the expensing of the start up costs. ISys Answers Y2 cost recovery deductions are $14,086. Original Asset Computer Equipment Office Equipment Y1 Cost Recovery Expense Remaining Basis Basis $15,000 $10,000 $15,000 $10,000 9-12 Depreciation Quarter th 4 4th Rate 5.00% 3.57% Expense $750 $357 Topic 8 - Property Acquisition and Cost Recovery Furniture $3,000 Start-up costs Start-up immediate $7,000 $3,000 $2,000 $5,000 4th 3.57% See below N/A Total Cost Recovery Expense Start-up costs Y1 Description Amount (1) Maximum immediate expense $5,000 (2) Total start up costs $7,000 (3) Phase-out threshold 50,000 (4) Immediate expense phase-out $0 (5) Allowable immediate expense $5,000 (6) Remaining start up costs $2,000 (7) Recovery period in months 180 (8) Monthly straight-line amortization 11.11 (9) Teton business months during year 1 Year 1 straight-line amortization for start up costs Asset Explanation 195 Given in problem 195 (2) (3) (1) (4) (2) (5) 15 years 195 (6) / (7) October through x 3 December $33 (8) x (9) Y1 Cost Recovery Expense Remaining Basis Quarter 4th $10,000 Office Equipment Basis Depreciation $15,000 Computer Equipment 4th $15,000 $10,000 $3,000 Furniture Start-up costs $33 $5,000 $6,247 expense Original $107 4th Rate 38.00 % 27.55 % Expense $5,700 $2,755 $3,000 27.55 % $827 $7,000 $11.11 x 12 $133 20.00 % $3,600 14.29 % See $572 $500 $5,000 $2,000 N/A HY Delivery van $18,000 Pinball machine Customer List $4,000 $10,000 HY 9-13 Topic 8 - Property Acquisition and Cost Recovery N/A 9-14 below Topic 8 - Property Acquisition and Cost Recovery $14,087 Total Cost Recovery Expense Description (1) Customer list (section 197 intangible) (2) Recovery period in months (3) Monthly straight-line amortization (4) April through December Year 1 straight-line amortization for customer list Amount Explanation $10,000 Given in problem 180 Section 197 55.56 (1) / (2) x9 $500 (3) x (4) b. ISys Answers basis is as follows: Adjusted Basis Expense Year 1 Original Asset Cost Year 2 Cost Depreciation Basis Recovery Recovery Expense Computer Equipment Office Equipment Furniture Start-up costs Delivery van Pinball machine Customer List $15,000 $10,000 $3,000 $7,000 $18,000 $4,000 $10,000 Totals $67,000 $5,000 $750 $357 $107 $33 _______ $6,247 $5,700 $2,755 $827 $133 $3,600 $572 $500 $8,550 $ 6,888 $ 2,066 $ 1,834 $14,400 $3,428 $9,500 $14,087 $46,666 Total Cost Recovery Expense 18. Diamond Mountain was originally thought to be one of the few places in North America to contain diamonds, so Diamond Mountain Inc. (DM) purchased the land for $1,000,000. Later, DM discovered that the only diamonds on the mountain had been planted there and the land was worthless for mining. DM engineers discovered a new survey technology and discovered a silver deposit estimated at 5,000 pounds on Diamond Mountain. DM immediately bought new drilling equipment and began mining the silver. 9-15 Topic 8 - Property Acquisition and Cost Recovery In years 1-3 following the opening of the mine, DM had net (gross) income of $200,000 ($700,000), $400,000 ($1,100,000), and $600,000 ($1,450,000), respectively. Mining amounts for each year were as follows: 750 pounds (year 1), 1,450 pounds (year 2), and 1,800 pounds (year 3). At the end of year 2, engineers used the new technology (which had been improving over time) and estimated there was still an estimated 6,000 pounds of silver deposits. DM also began a research and experimentation project with the hopes of gaining a patent for its new survey technology. Diamond Mountain Inc. chooses to capitalize research and experimentation expenditures and amortize the costs over 60 months or until it obtains a patent on its technology. In March of year 1, DM spent $95,000 on research and experimentation. DM spent another $75,000 in February of year 2 for research and experimentation. In September of year 2, DM paid $20,000 of legal fees and was granted the patent in October of year 2 (the entire process of obtaining a patent was unusually fast). Answer the following questions regarding DMs activities (assume that DM tries to maximize its deductions if given a choice). a. What is DMs depletion expense for years 1 - 3? b. What is DMs research and experimentation amortization for years 1 and 2? c. What is DMs basis in its patent and what is its amortization for the patent in year 2? a. DMs depletion expense is as follows, actual cost and percentage depletion are shown below: Actual Depletion Original basis Year 1 depletion (cost depletion) Year 1 Ending basis Year 2 depletion (cost depletion) Year 2 Ending basis Year 3 depletion (percentage depletion) Year 3 Ending basis $ 1,000,000 $ (150,000) $ 850,000 $ (165,431) $ 684,569 $ (217,500) $ 467,069 Cost Depletion Method Year 1 $1,000,000 9-16 Year 3 $684,569 5,000 $ 200 $ 750 Year 1 Beginning basis Estimated pounds of silver in mine at beginning of year Basis depletion per pound Pounds of silver mined in year Year 2 $850,000 7,450 $ 114.09 $1,450 6,000 $114.09 1,800 Topic 8 - Property Acquisition and Cost Recovery Year depletion Basis at end of year $150,000 $ 850,000 9-17 $165,431 $ 684,569 $205,362 $ 479,207 Topic 8 - Property Acquisition and Cost Recovery Percentage Depletion Method Year 1 $ 200,000 $ 700,000 15% $ 105,000 Year 3 $ 600,000 $ 1,450,000 15% $ 217,500 $ $ Net income Gross income Percentage Percentage depletion expense before limit 50% of net income limitation Allowable percentage depletion Year 2 $ 400,000 $1,100,000 15% $ 165,000 $ 200,000 $ 165,000 $ $ 100,000 100,000 300,000 217,500 b. DMs research and experimentation amortization for years 1 and 2 are as follows: Description Year 1 Amount $95,000 60 $1,583.33 10 $15,833 9 Year 2 Amount $75,000 60 $1,250 0 $9 Year 2 straight-line amortization $14,250 $11,250 Accumulated amortization through September of year 2 Unamortized Research and experimentation $30,083 $11,250 $64,917 $63,750 Research and experimental expenses Recovery period in months Monthly straight-line amortization DMs business months during year 1 Year 1 straight-line amortization DM's business months during year 2 before the patent is issued $128,667 c. DMs basis in its patent and amortization for patent in year 2 are as follows: Description Unamortized research and experimental expenses Legal expenses related to patent Amortizable expenses for patent Recovery period in months Monthly straight-line amortization DM's business months from October through December Year 2 straight-line amortization for patent 9-18 Amount $128,667 $20,000 $148,667 204 728.76 3 $2,186
MOST POPULAR MATERIALS FROM ACC 448
MOST POPULAR MATERIALS FROM ACC
MOST POPULAR MATERIALS FROM Marshall