Allied Trust Inc

question 26

Short Answer

Allied Trust Inc. charges its members $30,000 each year. Allied Trust then buys patents with these funds so that the patents cannot be used by trolls against the members. Members also will have free and unfettered access to the patents purchased. Such an arrangement is called a ______.

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Definitions:

Depletion

The allocation of the cost of natural resources over their useful life, reflecting the consumption of the resource.

Metal Ores

Naturally occurring minerals from which metals can be extracted economically.

Amortization

Amortization refers to the process of gradually writing off the initial cost of an asset over a period.

Expense Account

An account that records the costs of operating a business.