Question - On January 2, 2014, Klein Co. bought a trademark from Royce, Inc. for $1,000,000. An independent research company estimated that the remaining useful life of the trademark was 10 years. Its unamortized cost on Royce's books was $800,000. In Klein's 2014 income statement, what amount should be reported as amortization expense?
a. $100,000.
b. $ 80,000.
c. $ 50,000.
d. $ 40,000.