Goosen Company bought a copyright for 90000 on January 1 201

Goosen Company bought a copyright for $90,000 on January 1, 2015, at which time the copyright had an estimated useful life of 15 years. On January 5, 2018, the company determined that the copyright would expire at the end of 2021. How much should Goosen record retrospectively as the effect of change? Multiple Choice $0 $12,000 $8,000. $14,400

Answer:

$0 is Correct.

Change in estimated useful life of Copyright will have prospective effect i.e. effect on the remaining life. Any Change in Useful life or anything will not have retrospective effect.

Goosen Company bought a copyright for $90,000 on January 1, 2015, at which time the copyright had an estimated useful life of 15 years. On January 5, 2018, the

Goosen Company bought a copyright for 90000 on January 1 201

Solution

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