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:

Ordinance

A piece of legislation enacted by a municipal authority covering matters not already covered by federal or state law.

Cost Benefit Analysis

An evaluation process that compares the costs and benefits of a project or decision to determine its viability or worth.

Environmentalist

An individual or organization that advocates for the protection of the environment against pollution and degradation.

Legal Realism

A theory in law that emphasizes the real-world outcomes of cases and the roles of judges and societal influences, rather than purely relying on abstract legal rules or doctrines.