Kerr Company Purchased a Patent on January 1, 2006 for $180,000.The

question 27

Multiple Choice

Kerr Company purchased a patent on January 1, 2006 for $180,000.The patent had a remaining useful life of 10 years at that date.In January of 2007, Kerr successfully defends the patent at a cost of $81,000, extending the patent's life to 12/31/18.What amount of amortization expense would Kerr record in 2007?

• A)$18,000
• B)$20,250
• C)$21,750
• D)$27,000

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Definitions:

Saturated Fats

Fatty acids found in animal and some plant fats that are solid at room temperature and can contribute to heart disease.

Trans Fatty Acids

A type of unhealthy fat found in partially hydrogenated oils, associated with an increased risk of heart disease and other health issues.

Stroke

A medical condition characterized by the sudden death of brain cells due to lack of oxygen, caused by blockage or rupture of an artery to the brain.

Blood Flow

The movement of blood through the circulatory system, supplying nutrients and oxygen to the body while removing waste products.