Jason Purchases a Patent at a Cost of $24,000

question 80

Multiple Choice

Jason purchases a patent at a cost of $24,000. The patent has 8 years of legal life remaining from the date of purchase.
I.If the patent is the only asset Jason purchased, he must amortize the patent over 15 years.
II.If the patent was part of the purchase of all the assets of a business, he must amortize the patent over 15 years.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Cognitive

Relating to mental processes such as perception, memory, and reasoning.

Affective

Relating to moods, feelings, and attitudes.

Behavioral

Pertaining to the actions or reactions of persons or things in response to external or internal stimuli.

Intense Dislike

A powerful feeling of aversion or opposition towards someone or something.