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Russell Enterprises Acquired a Franchise from Michael Incorporated for $300,000

Question 100

Multiple Choice

Russell Enterprises acquired a franchise from Michael Incorporated for $300,000. The franchise agreement is for a period of six years. Russell uses straight-line to amortize all intangible assets. What would be the reported book value of the franchise two years after the purchase?


A) $300,000.
B) $250,000.
C) $200,000.
D) $100,000.

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