In January, 2015, Tillicum Corp

question 78

Multiple Choice

In January, 2015, Tillicum Corp. purchased a patent for a new consumer product for $ 900,000. At the time of purchase, the patent was valid for 15 years. Due to the competitive nature of the product, however, the patent was estimated to have a useful life of only ten years. During 2020, the product was permanently removed from the market because of a potential health hazard. What amount should Tillicum recognize as an impairment loss for calendar 2020, assuming amortization has been recorded annually using the straight-line method with no residual value?

• A) $ 600,000
• B) $ 450,000
• C) $ 90,000
• D) $ 60,000

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Definitions:

Charisma

A unique ability some individuals have to inspire enthusiasm, interest, or affection in others through personal magnetism or charm.

Referent Power

A form of influence derived from the charisma and interpersonal appeal of the leader, often leading to admiration and the desire to emulate.

John F. Kennedy

The 35th President of the United States, serving from January 1961 until his assassination in November 1963, known for his contributions to civil rights and space exploration.

Informal Authority

Influence and power within an organization that stems from personal attributes or relationships, rather than formal position.