On June 1, 2012, Red Corporation Purchased an Existing Business

question 100

Multiple Choice

On June 1, 2012, Red Corporation purchased an existing business.With respect to the acquired assets of the business, Red allocated $300,000 of the purchase price to a patent.The patent will expire in 20 years.Determine the total amount that Red may amortize for 2012 for the patent.

• A)$0.
• B)$1,667.
• C)$11,667.
• D)$35,000.
• E)None of the above.

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Definitions:

Clock Time

relates to the measurement of time using instruments or devices, typically standardized hours, minutes, and seconds, as opposed to subjective or natural measurements of time.

Time Currency

A concept where units of time are used as currency, often in systems of barter or trade for services where traditional money is not used.

Technological Control

The use of technology to monitor and control the production and distribution of products and services.

Security Badges

Identification cards or badges used to verify a person’s authorization to enter a secured area or access certain resources.