A Company Purchased a Patent for $100,000 at the Beginning

question 136

Multiple Choice

A company purchased a patent for $100,000 at the beginning of 2013 which it believes has an expected useful life of 5 years. Fortunately, the patent has a legal life of 20 years. How much amortization expense should be recorded in 2013?

• A)$0
• B)$5,000
• C)$20,000
• D)$100,000

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Definitions:

Socioeconomic Gradient

A term used to describe the stepped levels of economic and social position or status that typically influence individuals' health, access to resources, and life opportunities.

Health

A state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity, according to the World Health Organization.

Black Plague

Also known as the Black Death, it was a devastating global epidemic of bubonic plague that struck Europe and Asia in the 14th century.

Lives

The plural of life; refers to the existence of individuals, communities, or species and the experiences that define them.