On january 1, trilite corp. incurred organization costs of $24,000. trilite is amortizing these costs so as to obtain the maximum allowable deduction for federal income tax purposes. for financial accounting purposes, what portion of the organization costs will trilite defer to subsequent years?

a $23,400
b $19,200
c $4,800
d $0

D $0

Explanation:

Amortization is an accounting concept that lowers the book value of an intangible asset periodically.  Amortization spreads the cost of the asset over it gainful years. It is under the expense of and revenues matching principle.  Examples of intangible assets that are amortized include goodwill, copyrights and patents.

Amortization is similar to depreciation for physical assets. Amortization measures the value lost in each year, beginning when the asset was acquired. The amortization amount is deducted from the book value and treated as an expense for that year.

answer; closing the loop;