At the End of 2017,Clock Products,Inc

question 196

Multiple Choice

At the end of 2017,Clock Products,Inc.determined that one of its patents was worthless.The patent had a cost of $300,000.The patent had been amortized for five years of its estimated 15-year legal life.Which of the following statements is correct?

• A)Clock Products must continue to amortize the patent over its remaining ten years of life.
• B)The patent must be reduced to 5/15,or 33.3% of its original cost and amortized over the remaining ten years.
• C)The remaining unamortized cost must be removed from the accounting records and treated as a loss on the income statement.
• D)Clock Products must correct its financial statements for the past five years,so that the entire cost is allocated to that five-year period.

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Definitions:

Rational Thinking

The process of logical or sound reasoning, often involving critical thinking and the evaluation of facts and information.

Transference

In psychoanalysis, the process by which patients project feelings about important figures in their life onto the therapist.

Approval

The act of agreeing with, accepting, or endorsing something or someone, often officially.

Therapist's

Pertaining to a therapist, often relating to their methods, practices, or interventions used in the treatment of disorders.