Jorge purchased a patent for use in his business in the current year. The purchase occurred on July 15th and the purchase price was $75,000. If the patent has a remaining life of 75 months, what is the total amortization expense Jorge may deduct during the current year?

The patent amortization expense that Jorge may deduct in the current year is $6000

Explanation:

Jorge purchased the patent in the 7th month of the year, from 7th till the end of year gives a total of 6 months, in other words, Jorge is able to amortize 6 months of patent in the year of purchase.

Patent amortization expense=patent value*applicable months in the year/useful life of the patent

patent value is $75000

applicable months in the year is 6

useful life is 75 months

Patent amortization expense=$75000*6/75

Patent amortization expense=$6000