Gessner LLC Patented a Process It Developed in the Current

question 3

Multiple Choice

Gessner LLC patented a process it developed in the current year. The patent is expected to create benefits for Gessner over a 10-year period. The patent was issued on April 15 ^th and the legal costs associated with the patent were $43,000. In addition, Gessner had unamortized research expenditures of $15,000 related to the process. What is the total amortization amount Gessner may deduct during the current year?

• A)$2,417
• B)$2,174
• C)$4,108
• D)$4,350
• E)None of the choices are correct.

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Definitions:

Investment Decision

The process of evaluating and selecting where to allocate financial resources to achieve anticipated financial returns or gains.

Straight-Line Depreciation

A method of calculating the depreciation of an asset whereby the original cost is reduced equally across each year of its estimated useful life.

Salvage Value

The predicted disposal value of an asset at the conclusion of its usable life.