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Smith Corporation purchased an intangible asset for $110,000. Compute the second year's tax amortization. The second year would be a full year's amortization. The company estimates the life at 12 years which is different from the IRS life of 15 years.
a. What is the second year's tax amortization?
b. Present the journal entry to record purchase of the intangible asset noted above. The company financed $50,000 and paid cash for the balance.
c. The intangible has a 15 year life. Present the journal entry to record the second year amortization. The journal entry must be in the proper format.
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