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:

Forward-Acting

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A theoretical process in which individuals unconsciously or consciously block out painful, dangerous, or unwelcome memories.