Question

Smitty Museum purchased the copyright to a piece of artwork for $907,000. Smitty plans to reproduce 1.8 million posters of the artwork over a period of 11 years. Calculate the amortization for the year assuming the Museum plans to reproduce and sell 127,000 posters the first year.

Answer 1

$82,454.45

Step-by-step explanation:

The computation of the amortization for the year is shown below:

= Purchase value of the copyright ÷ number of years

= $907,000 ÷ 11 years

= $82,454.45

By dividing the purchase value of the copyright with the number of years we can get the amortization and the same is shown above

All other information which is given is not relevant. Hence ignored it