KUI Company Owns a Copyright with an Estimated 10-Year Useful

Multiple Choice

KUI Company owns a copyright with an estimated 10-year useful life,a zero salvage value,and an historical cost of $20,000.What is the effect on net income of making the proper adjusting entry at year-end?

A) The adjustment will decrease net income by $20,000.
B) The adjustment will increase net income by $2,000.
C) The adjustment will decrease net income by $2,000.
D) The adjustment will have no affect on net income,but it will reduce net operating cash flows by $2,000.