In January, 2012, Tillicum Corp

question 23

Multiple Choice

In January, 2012, Tillicum Corp.purchased a patent for a new consumer product for $900,000.At the time of purchase, the patent was valid for fifteen years.Due to the competitive nature of the product, however, the patent was estimated to have a useful life of only ten years.During 2017, the product was permanently removed from the market because of a potential health hazard.What amount should Tillicum recognize as an impairment loss for calendar 2017, assuming amortization has been recorded annually using the straight-line method with no residual value?

• A)$600,000
• B)$450,000
• C)$90,000
• D)$60,000

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Definitions:

Successively Higher Levels

A strategy or process that involves progress or advancement in stages, each of which builds on the achievements of the previous one towards a certain goal.

Inspirational Motivation

The ability to inspire and motivate others towards achieving a shared vision or goal through positive reinforcement, enthusiasm, and dedication.

Pattern of Behaviors

A pattern of behaviors refers to recurring actions or reactions that are characteristic of an individual, group, or system.

Sense of Meaning

The perception that one’s life has purpose, significance, and coherence, contributing to overall well-being.