Pocono CoPurchased a Patent at the Beginning of 2017 for $490,000

question 66

Multiple Choice

Pocono Co.purchased a patent at the beginning of 2017 for $490,000.Economic benefits were expected for seven years,but the patent's legal life was 20 years.Also,during 2017,the company incurred research and development costs of $150,000.Patent amortization expense for 2017 is

• A)$24,500.
• B)$150,000.
• C)$72,143.
• D)$70,000.

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Definitions:

Diagnosis-Related Groups (DRGs)

A system to classify hospital cases into one of originally 467 groups, intended to encourage cost efficiency while maintaining quality of care.

Hospital

A hospital is a healthcare institution providing patient treatment with specialized medical and nursing staff and medical equipment.

Surrogacy

An arrangement where a woman carries and delivers a child for another person or couple, often involving legal and contractual agreements.

Contracted Party

An entity or individual that has legally agreed to terms and conditions set forth in a contract with another party.