A Company Purchased a Patent for $100,000 at the Beginning

question 109

Multiple Choice

A company purchased a patent for $100,000 at the beginning of 2012 which it believes has an expected useful life of 5 years.Fortunately,the patent has a legal life of 20 years.How much amortization expense should be recorded in 2012?

• A)$0
• B)$5,000
• C)$20,000
• D)$100,000

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Definitions:

Long-term Storage

The part of memory where information is stored for extended periods of time, potentially for a lifetime.

Recency Effect

The psychological phenomenon where the most recently presented items or experiences are most likely to be remembered.

Short-term Storage

A part of the memory system where information is held temporarily for a short period, typically seconds to minutes.

Multiplication Tables

A mathematical table used to define a multiplication operation for an algebraic system, commonly taught as part of elementary education.