On January 2, 2014, Albion Corp

question 57

Multiple Choice

On January 2, 2014, Albion Corp.purchased a patent for a new consumer product for $45,000.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 Albion recognize as an impairment loss for calendar 2017, assuming amortization has been recorded annually using the straight-line method with no residual value?

• A)$4,500
• B)$27,000
• C)$31,500
• D)$36,000

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Definitions:

Self-reports

Methods in research and psychology where individuals provide data about themselves, often referring to their feelings, attitudes, or behaviors.

Less Prejudiced

Refers to demonstrating or holding fewer prejudiced attitudes, beliefs, or actions against individuals or groups based on preconceived notions.

Healthier

Possessing or exhibiting better physical or mental health compared to a previous state or to others.

Social Desirability Bias

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, often leading to overreporting of socially desirable behaviors and underreporting of undesirable behaviors in surveys and studies.