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  3. your company pays $620,000 for a patent that has a

Your company pays $620,000 for a patent that has a 20 year legal life, but...

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Accounting

Your company pays $620,000 for a patent that has a 20 year legal life, but a 10 year expected useful life remaining. Each year, your company should:
Multiple Choice
A) Amortize over the average of the legal and useful life; resulting in a debit to Amortization Expense for $41,333 and a credit to Accumulated Amortization for $41,333.
B) debit Amortization Expense for $31,000 and credit Accumulated Amortization for $31,000.
C) debit Amortization Expense for $62,000 and credit Accumulated Amortization for $6D) eport no Amortization Expense because patents are not subject to amortization.

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