Mitzy's Muffins Ltd

Mitzy's Muffins Ltd.purchased a commercial baking system for $150,000 at the beginning of 20X1.The estimated economic life of the system is 10 years and Mitzy's uses straight-line amortization.At the beginning of 20X3,Delicious Bakeries Ltd.acquired Mitzi's in a business combination.At the time of acquisition,Mitzi's baking system had a fair value of $140,000.At the end of 20X3,how much amortization expense should Mitzi report?

A) $0
B) $14,000
C) $15,000
D) $17,500

Correct Answer:

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