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(Solution) - Several years ago Bennet Security purchased for 150 000 a well known

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Several years ago Bennet Security purchased for $150,000 a well-known trademark for padlocks and other security products. After using the trademark for three years, Bennet Security discontinued it altogether when the company withdrew from the lock business and concentrated on the manufacture of aircraft parts. Amortization of the trademark at the rate of $7,500 a year is being continued on the basis of a 20-year life, which the owner says is consistent with accounting standards. Do you agree? Explain.

 







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This question was answered on: Jul 11, 2017

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