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:

World's Population

The total number of people currently living on Earth.

LDCs

LDCs, or Least Developed Countries, are countries that have been classified by the UN due to their low GDP per capita, weak human assets, and high degree of economic vulnerability.

NICs

Newly Industrialized Countries, nations that have recently experienced rapid industrial growth and show signs of moving from a mainly agricultural to an industry and manufacturing-based economy.

Net National Savings Rate

A measure of the total savings of an economy after taking into account depreciation, expressed as a percentage of Gross National Product (GNP).