Riser Corporation was granted a patent on a product on January 1, 1998.To protect its patent, the corporation purchased on January 1, 2007 a patent on a competing product which was originally issued on January 10, 2003.Because of its unique plant, Riser Corporation does not feel the competing patent can be used in producing a product.The cost of the competing patent should be
A)amortized over a maximum period of 20 years.
B)amortized over a maximum period of 16 years.
C)amortized over a maximum period of 11 years.
D)expensed in 2007.

Question

Quizplus · Accepted Answer

The competing patent should be amortized over the remaining legal life of the patent, which is 20 years from the original issue date in 2003, resulting in a maximum period of 11 years from 2007.

Riser Corporation Was Granted a Patent on a Product on January