A Patent Was Purchased for $585,000 with a Legal Life

question 71

Multiple Choice

A patent was purchased for $585,000 with a legal life of 20 years.Management estimates that the patent has a 12-year economic life.The entry to record amortization would include:

• A) an increase in amortization expense for $29,250.
• B) an increase in research and development expense for $585,000.
• C) a decrease in patent for $48,750.
• D) an increase in accumulated amortization for $585,000.

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Definitions:

Logical Definition

A precise description that aims to outline the essence of a concept by delineating its necessary and sufficient conditions.

Vague

Lacking in clarity, specificity, or precision, often intentionally or due to insufficient detail.

Obscure

Difficult to understand or unclear due to being complex or not explicitly stated.

Cessation

The process of bringing or coming to an end; a halt or cessation.