A Patent Should

question 74

Multiple Choice

A patent should

• A) be amortized over a period of 20 years.
• B) not be amortized if it has an indefinite life.
• C) be amortized over its useful life or 20 years whichever is longer.
• D) be amortized over its useful life or 20 years whichever is shorter.

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Definitions:

Tax Purposes

For tax purposes indicates the considerations or implications for calculating and reporting taxes, differing from accounting or financial purposes and might involve specific treatments for expenses or revenues.

Financial Lease

A type of lease where the lessee assumes some of the risks and benefits of ownership of the leased asset.

Fully-Amortized

Describes a loan in which all payments will be made on time and in full over the life of the loan, resulting in the complete payoff of the loan amount and interest.

Insurance

A financial product that provides protection against potential future losses or damages.