On June 1, 2019, Red Corporation Purchased an Existing Business

question 41

Multiple Choice

On June 1, 2019, Red Corporation purchased an existing business.With respect to the acquired assets of the business, Red allocated $300,000 of the purchase price to a patent.The patent will expire in 20 years.Determine the total amount that Red may amortize for 2019 for the patent.

• A)$0
• B)$1,667
• C)$11,667
• D)$35,000

---

Definitions:

Inborn

Characteristics, qualities, or traits that are present from birth, not acquired through experience or learning.

Instinctual

Behaviors or responses that are inherent and automatic, not learned through experience. These reactions are deeply embedded in an organism's biology.

Materials Task

A methodological approach in cognitive or developmental psychology that involves manipulating physical materials to assess cognitive processing or learning outcomes.

Years of Schooling

The total number of years that an individual has spent in formal education.