In January of 2009, Vega Corporation Purchased a Patent at a Cost

question 62

Multiple Choice

In January of 2009, Vega Corporation purchased a patent at a cost of $200,000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In 2012, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent. The amount charged to income (expense and loss) in 2012 related to the patent should be:

• A)$ 40,000.
• B)$ 65,000.
• C)$215,000.
• D)$ 25,000.

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Definitions:

Individual Source

A single entity or person from which information, data, or resources originate.

Resistance to Change

Opposition or reluctance by individuals or groups within an organization to adopt new approaches, practices, or technologies.

Threat to Expertise

A situation or dynamic in which an individual's specialized knowledge or skills are undervalued, challenged, or becoming obsolete, potentially affecting their standing or career.

Demographic Characteristics

Specific attributes that describe segments of the population, such as age, gender, income, education level, and ethnicity.