Question

Daschle LLC completed some research and development during June of the current year. The related costs were $69,600. If Daschle wants to capitalize and amortize the costs as quickly as possible, what is the total amortization amount Daschle may deduct during the current year

Answer 1

The answer is "8073.6".

Step-by-step explanation:

Given:

Cost
`=69,600\\\\`

Total years
`= 5 \ or\ 60\ months\\\\`

total months during the year
`=7\\\\`

Calculating the Amortization expense:

`= 69,600 * (7)/(60)\\\\= 6,960 * (7)/(6)\\\\= 6,960 * 1.16\\\\=8073.6`