During 2006, Volvo Machine Company Spent $352,000 on Research and Development

question 82

Multiple Choice

During 2006, Volvo Machine Company spent $352,000 on research and development costs for an invention. This invention was patented on January 2, 2007, at a nominal cost that was expensed in 2007. The patent has a legal life of 17 years and an estimated useful life of 8 years. In January 2011, Volvo paid $32,000 for legal fees in a successful defense of the patent. Amortization for 2011 should be

• A) $2,462.
• B) $8,000.
• C) $32,000.
• D) $52,000.

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Definitions:

Smooth Muscle

A type of muscle found in the walls of hollow organs like the intestines and blood vessels, functioning involuntarily and controlled by the autonomic nervous system.

Cardiac Muscle

A specialized form of striated muscle found in the heart, characterized by interconnected fibers that contract to pump blood throughout the body.

Skeletal Muscle

A type of striated muscle, which is under voluntary control, functioning to produce movement by contracting.

Dermal Cells

Cells that make up the outer layer of an organism, particularly plants, providing protection against environmental stress, pathogens, and water loss.