Sammy spent $250 to buy a domain name for her graphic design website. She has nine years before she needs to renew or sell the domain name. What will the domains amortised expense be after one year?
The amortised expense for the domain name after one year would be $27.78 ($250 divided by 9 years).
To calculate the amortized expense of a domain name after one year, we need to determine the annual amortization expense. Amortization is the gradual reduction of an intangible asset's value over its useful life.
In this case, Sammy spent $250 on a domain name, and she has nine years before she needs to renew or sell it. To find the annual amortization expense, we divide the initial cost by the useful life (in this case, nine years):
Amortization Expense per year = Initial cost / Useful life
Amortization Expense per year = $250 / 9
Amortization Expense per year ≈ $27.78
Therefore, after one year, the amortized expense for the domain name would be approximately $27.78.
To calculate the amortized expense for the domain name after one year, we need to divide the initial cost by the number of years until renewal.
Amortized Expense = Initial Cost / Number of Years
In this case, the initial cost of the domain name is $250 and the number of years until renewal is 9.
Amortized Expense = $250 / 9
Amortized Expense = $27.78 (rounded to the nearest cent)
So, the domain name's amortized expense after one year will be approximately $27.78.