Your Company Pays $620,000 for a Patent That Has 10

question 105

Multiple Choice

Your company pays $620,000 for a patent that has 10 years remaining.Each year,your company should:

• A)debit amortization expense for $62,000 and credit accumulated amortization for $62,000.
• B)debit intangible assets and credit accumulated amortization for an amount equal to 20% of book value.
• C)debit amortization expense for $31,000 and credit intangible assets for $31,000.
• D)report no amortization expense because patents are not subject to amortization.

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Definitions:

Systemic Circulation

Refers to the part of cardiovascular circulation which carries oxygenated blood away from the heart to the body, and returns deoxygenated blood back to the heart.

Pump Blood

The process of moving blood through the chambers of the heart and throughout the body's circulatory system to provide oxygen and nutrients to tissues and remove waste products.

Labeled Structure

A diagram or model of an object with parts named or marked for identification and explanatory purposes.

Semilunar Valve

A valve in the heart located at the exits of the right and left ventricles which prevents the backflow of blood from the aorta and the pulmonary artery into the ventricles.