At the Beginning of Year 1,a Company Purchased a Patent

question 98

Multiple Choice

At the beginning of Year 1,a company purchased a patent for $100,000 that has an expected useful life of 5 years.The patent has a legal life of 20 years.How much amortization expense should the company record in Year 1?

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

---

Definitions:

Heart Pendant

A necklace featuring a pendant shaped like a heart, often symbolizing love or affection.

Discharged

Released or let go, often used in context of being released from a hospital or military service.

Contracts

A legally binding agreement between two or more parties that is enforceable by law.

First Session

The initial meeting or engagement in a series, such as therapy or counseling, setting the foundation for subsequent interactions.