On December 1 2022 Daylilly Company Purchased a Patent from Elvis

question 22

Multiple Choice

On December 1 2022 Daylilly Company purchased a patent from Elvis Company for $1200000 plus legal fees of $24000.The patent was recorded on Elvis' books for $60000.It is estimated that the patent has a remaining useful life of 6 years.Use the following tabular analysis to make the adjustment for amortization expense for the year 2022.

• A)Increase Expenses and decrease Cash $5000.
• B)Increase Revenue $1140000 and decrease Cash $1140000.
• C)Increase Expenses and decrease Patents $17000.
• D)Increase Expenses and decrease Patents $200000.

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Definitions:

Superego

In Freudian psychoanalysis, the part of the personality that acts as the ethical component, providing moral standards by which the ego operates.

Freud

The founder of psychoanalysis, Austrian neurologist Sigmund Freud, devised a method to cure psychopathologies by facilitating conversations between a patient and a psychoanalyst.

Ethical Standards

Principles that govern the behavior of individuals and organizations, often serving as guidelines for moral and correct actions and decisions.

Superego

A component of Freud's psychoanalytic theory representing the internalized societal and parental standards of right and wrong.