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:

Preventing Pregnancy

The use of methods or techniques to avoid conception or birth, including contraception, abstinence, and sterilization procedures.

Foam

A substance formed by trapping pockets of gas in a liquid or solid, commonly used for various applications from cleaning to fire suppression.

Patch

A method of delivering medication or hormones through the skin, often used for birth control or to quit smoking.