Blue Co Has a Patent on a Communication Process

question 114

Multiple Choice

Blue Co. has a patent on a communication process. The company has amortized the patent on a straight-line basis since 2005, when it was acquired at a cost of $36 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of 6 years rather than the 9-year life being used to amortize its cost. The decision was made at the end of 2009 (before adjusting and closing entries) . What is the appropriate patent amortization expense in 2009?

• A)$ 4 million.
• B)$ 5 million.
• C)$10 million.
• D)$20 million.

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Definitions:

Culturally Diverse Workforce

A workplace composed of employees from various ethnic, racial, gender, and nationality backgrounds, enhancing creativity and innovation.

Diversity Issues

Challenges related to managing a diverse workforce, including differences in culture, gender, age, and background.

Managing Diversity

The strategies and practices used to create an inclusive atmosphere that values and utilizes differences among people.

Teams Competency

The collective knowledge, skills, and abilities that contribute to a team's ability to achieve its goals effectively.