Jeff Corporation purchased a limited-life intangible asset for $120,000 on May 1, 2006. It has a useful life of 10 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2008?

$ -0-
$24,000
$32,000
$36,000

To calculate the total amount of amortization expense recorded on the intangible asset by December 31, 2008, we need to determine the number of years from May 1, 2006, to December 31, 2008.

First, let's calculate the number of years from May 1, 2006, to December 31, 2008:

Year 2006: From May 1, 2006, to December 31, 2006 = 1/10 (since only 8 months of that year are remaining)
Year 2007: Full year = 1/10
Year 2008: Full year = 1/10

Now, let's calculate the amortization expense for each year:

Year 2006: $120,000 x (1/10) = $12,000
Year 2007: $120,000 x (1/10) = $12,000
Year 2008: $120,000 x (1/10) = $12,000

Finally, add the amortization expenses for each year to find the total:

$12,000 + $12,000 + $12,000 = $36,000

Therefore, the correct answer is $36,000.