During 2009,Cabot Machine Company Spent $352,000 on Research and Development

question 75

Multiple Choice

During 2009,Cabot Machine Company spent $352,000 on research and development costs for an invention.This invention was patented on January 2,2010,at a nominal cost that was expensed in 2010.The patent has a legal life of 17 years and an estimated useful life of 8 years.In January 2014,Cabot paid $32,000 for legal fees in a successful defense of the patent.Amortization for 2014 should be

• A) $2,462.
• B) $8,000.
• C) $32,000.
• D) $52,000.

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Definitions:

Wage Rate

The amount of compensation or payment received by an employee per unit of time or piece of work completed.

Pizza Makers

Individuals or machines specifically tasked with preparing and cooking pizzas.

Increase in Supply

Occurs when there is a rise in the quantity of a good or service available in the market, typically resulting from lower production costs or an improvement in technology.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity supplied.