Broadway Corporation Was Granted a Patent on a Product on January

question 25

Multiple Choice

Broadway Corporation was granted a patent on a product on January 1, 2008. To protect its patent, the corporation purchased on January 1, 2019 a patent on a competing product which was originally issued on January 10, 2015. Because of its unique plant, Broadway Corporation does not feel the competing patent can be used in producing a product. The cost of the competing patent should be

• A) amortized over a maximum period of 20 years.
• B) amortized over a maximum period of 16 years.
• C) amortized over a maximum period of 9 years.
• D) expensed in 2019.

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Definitions:

Axon

The long, slender projection of a neuron that conducts electrical impulses away from the neuron's cell body towards other neurons or muscles.

Myelin Sheath

A layer of fatty tissue surrounding the axons of some neurons that speeds up the transmission of electrical impulses.

Insulation

Material or substance used to prevent heat, sound, or electricity from escaping or entering.

Axons

Long, slender projections of nerve cells that transmit electrical impulses away from the neuron's body to other neurons, muscles, or glands.