When S Dee Company Bought B

Multiple Choice

When S. Dee Company bought B. Darin Company, the purchase price included a patent valued at $15,000. The patent has 10 years remaining of its legal life, but its estimated useful life to S. Dee Company was only 8 years. The journal entry to record the annual patent amortization would include a

A) debit to Patent, $1,875
B) debit to Amortization expense, $1,875
C) credit to Patent, $1,500
D) credit to Amortization expense, $1,500