CBS Corporation Acquired a Patent for $1,000,000

question 32

Multiple Choice

CBS Corporation acquired a patent for $1,000,000.The patent has a legal life of 20 years.Because of changing technology,this patent is expected to generate revenue for only 10 years and have no residual value.The annual amortization expense for the patent is:

• A)$0.
• B)$30,000.
• C)$50,000.
• D)$100,000.

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Definitions:

Market Forces

The natural dynamics of supply and demand that determine the prices and availability of goods and services in an economy without external influences.

Comparisons

The act or instance of examining the similarities and differences between two or more items.

Same Industry

Refers to companies that operate in the same sector or category of business, often competing with each other or serving similar markets.

Intangible Assets

Non-physical assets that possess value due to their intellectual or proprietary characteristics, such as patents and trademarks.