On January 1 of the Current Year, Dentux Corp

question 786

Multiple Choice

On January 1 of the current year, Dentux Corp. purchases a patent from another corporation for $600,000. The patent has a remaining life of 10 years. The patent is the only asset purchased from that corporation. Also on January 1, Dentux purchases all of the assets of Fenton Corp. Included in the Fenton assets acquired is a patent worth $300,000 that has a 10- year remaining life. What is the allowable amortization deduction on the two patents?

• A) $160,000
• B) $60,000
• C) $90,000
• D) $80,000

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Definitions:

Classical Contract Law

A body of law that outlines the rules for legally binding agreements between parties, focusing on principles of mutual consent and exchange.

Invitations

Offers or calls to attend, participate, or engage in a particular event or activity.

Offers

Proposals presented by one party to another as a basis for negotiations or a possible agreement in a contract.

Promissory Estoppel

A legal principle that prevents a promisor from revoking a promise when the promisee has reasonably relied on the promise to their detriment, thereby enforcing the promise to avoid injustice.