What is total Amortization for the year ending 1/31/2025 on ONLY new Intangibles purchases made during the years 2017-2025?

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Multiple Choice

What is total Amortization for the year ending 1/31/2025 on ONLY new Intangibles purchases made during the years 2017-2025?

Explanation:
Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful life. For the year ending 1/31/2025, you only consider new intangible purchases made during 2017–2025. For each new purchase, determine its annual amortization (cost divided by its useful life) and adjust for the portion of the year the asset was in service. Then sum these amounts across all new intangibles placed in service in that window. In the data provided, that sum equals 1,800, so the total amortization for the year is 1,800. If any asset wasn’t in service for the full year, you would prorate accordingly, but the final total in this problem comes out to 1,800.

Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful life. For the year ending 1/31/2025, you only consider new intangible purchases made during 2017–2025. For each new purchase, determine its annual amortization (cost divided by its useful life) and adjust for the portion of the year the asset was in service. Then sum these amounts across all new intangibles placed in service in that window. In the data provided, that sum equals 1,800, so the total amortization for the year is 1,800. If any asset wasn’t in service for the full year, you would prorate accordingly, but the final total in this problem comes out to 1,800.

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