ABC Corporation Acquired a Patent for $120,000

question 99

Multiple Choice

ABC Corporation acquired a patent for $120,000. The patent has a legal life of 20 years. Because of changing technology, the patent is expected to generate revenue for only 6 years. The annual amortization expense for the patent is:

• A)$6,000.
• B)$20,000.
• C)$0, because the patent cost should be expensed when the patent is purchased.
• D)$0, because the patent is not amortized.

---

Definitions:

Manipulative

Characterized by the skillful handling, controlling, or influencing of others in a clever or unscrupulous way.

Identity

The distinct personality of an individual regarded as a persisting entity; one's sense of self, defined by personal, social, and sometimes cultural dimensions.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience.

Attention Deficit Hyperactive Disorder (ADHD)

A neurodevelopmental disorder characterized by a pattern of inattention, hyperactivity, and impulsivity that is more severe than typically observed in individuals at a comparable level of development.