The Entry to Record Patent Amortization Expense

question 52

Multiple Choice

The entry to record Patent Amortization Expense:

• A)increases total assets and decreases total stockholders' equity.
• B)decreases total assets and increases total stockholders' equity.
• C)decreases both total assets and total stockholders' equity.
• D)increases both total assets and total stockholders' equity.

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Definitions:

Medicare Tax

A federal tax taken from earnings to fund the Medicare program, which provides health insurance for individuals aged 65 and older.

Employer Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, including contributions to social security, Medicare, and unemployment taxes.

Federal Income Tax

A charge imposed by the federal government of the United States on the yearly income of individuals, corporations, trusts, and various legal bodies.

Social Security Tax

Social security tax is a tax levied by the government to fund social security programs, typically deducted from an employee's paycheck and also matched by employers.