Chapter 11, Problem 11EB

The following intangible assets were purchased by Hanna Unlimited:

A. A patent with a remaining legal life of twelve years is bought, and Hanna expects to be able to use it for six years. It is purchased at a cost of $48,000.

B. A copyright with a remaining life of thirty years is purchased, and Hanna expects to be able to use it for ten years. It is purchased for $70,000.

Determine the annual amortization amount for each intangible asset.