On January 2, 2007, Klein Co

Multiple Choice

On January 2, 2007, Klein Co.bought a trademark from Royce, Inc.for $500,000.An independent research company estimated that the remaining useful life of the trademark was 10 years.Its unamortized cost on Royce's books was $400,000.In Klein's 2007 income statement, what amount should be reported as amortization expense?

A) $50,000.
B) $40,000.
C) $25,000.
D) $20,000.