Answer:
$30,000
Explanation:
Amortization is the process of expensing the cost of an intangible over its useful life. It is equivalent to depreciation in physical assets.
Under the straight-line depreciation, the depreciation amount is constant throughout the life of the asset.
For Bricktown, the cost of the asset is $50,000
use-life is five years,
the rate of depreciation will be 1/5 x 100
=1/5 x 100
20 percent
depreciation per year will 20% x $50,000
=20/100 x 100
=10,000
Accumulated depreciation at the end of the second year
=$10,000 x 2
=$20,000
The carrying value after two years will be the value of the asset - accumulated value. ( carrying value is the book value).
=$50,000 - $20,000
=$30,000
