AQR B Unit 3 Lesson 5 Amortization Investments Quick Check
What will the net value of Sami's $250 domain name be in three years, if the domain is valid for nine years?
$166.60
How does amortization affect your taxes?
Amortization reduces your taxable income.
What will the accumulated amortization of Mila and Dante's $5,000 patent be after seven years, given a $250 amortized expense each year?
$1,750
Sami spent $250 to buy a domain name for her graphic design website. She has nine years before she needs to renew or sell the domain name. What will the domain's amortized expense be after one year?
$27.80
Mila and Dante have been working to develop a new video game in their spare time, and they've saved enough to protect their work with a $5,000 patent. Their amortized expense for the first year is $250. How long will the patent, last?
20 years
What can an amortization table help you predict?
When an asset needs to be replaced
