On January 2, 2020, Gold Corp

Multiple Choice

On January 2, 2020, Gold Corp. bought a trademark from River Inc. for $ 100,000. An independent research company estimated that the remaining useful life of the trademark was 25 years. At this time, the trademark's net book value in River's records was $ 160,000. Because the trademark had a demonstrated limited life beyond 20 years, Gold decided to amortize the trademark over the maximum period, straight-line with no residual. In Gold's (calendar) 2020 income statement, what amount should be reported as amortization expense for this trademark?

A) $ 6,400
B) $ 6,000
C) $ 5,000
D) $ 4,000