A Company Acquires a Patent for a Drug with a Remaining

question 122

Multiple Choice

A company acquires a patent for a drug with a remaining legal and useful life of six years on January 1, 2009 for $1,800,000.The company uses straight-line amortization for patents.On January 2, 2011, a new patent is received for a timed-release version of the same drug.The new patent has a legal and useful life of twenty years.The least amount of amortization that could be recorded in 2011 is

• A)$300,000.
• B)$ 60,000.
• C)$ 81,818.
• D)$ 69,000.

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Definitions:

Clustered Development

A planning approach that concentrates buildings in specific areas on a site to preserve open space, natural resources, and reduce the footprint of development.

Solar Energy

The radiant energy emitted by the sun, which can be harnessed using technologies such as solar panels to produce electricity.

Urban Sprawl

The uncontrolled expansion of urban areas into surrounding rural areas, resulting in a spread-out or low-density residential development.

Environmental Impact

The effect of human activities on the natural environment, encompassing changes to ecosystems, biodiversity, and natural resources.