QUESTION:

 A company has a patent with a carrying value of $50,000 and a remaining useful life of 5 years. What would be the amortization expense for the current year using the straight-line method?

Answer:

The amortization expense for the current year would be $10,000 ($50,000 / 5 years).

Here's the tabulated working calculation for the amortization expense for the current year using the straight-line method:

To calculate the amortization expense using the straight-line method, we use the formula:

Amortization expense = Cost / Useful life

In this case, the cost of the patent is $50,000, and the remaining useful life is 5 years. Substituting these values into the formula, we get:

Amortization expense = $50,000 / 5 years

Simplifying the equation, we get:

Amortization expense = $10,000

Therefore, the amortization expense for the current year using the straight-line method would be $10,000.