During the Period from 2013 to the End of 2014

question 84

Multiple Choice

During the period from 2013 to the end of 2014, Excellence, Inc. spent $90,000 on research and development for an invention that was patented on January 1, 2015. Excellence estimated that the patented invention would be useful in its production for 10 years. At the beginning of 2017, Excellence paid $16,000 in legal fees in a successful defense of the patent. What is Excellence's patent amortization expense for 2017?

• A) $25,000
• B) $11,000
• C) $10,600
• D) $2,000

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Definitions:

Deadweight Loss

An economic inefficiency resulting from the lack of or impossibility to attain equilibrium in the market for a particular good or service.

Tax Revenue

The income generated by the government through the imposition of taxes on goods, services, and income.

Supply and Demand

Supply and demand is a fundamental economic model describing how prices and quantities of goods and services are determined in a market.

Tax Burden

The impact of a tax on the welfare of an economy, often measured as the portion of total income or expenditure paid in taxes by individuals or businesses.