Thompson Company incurred research and development costs of $100,000 and legal fees of $30,000 to acquire a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Thompson record as Patent Amortization Expense in the first year?
A) $ -0-.
B) $ 3,000.
C) $ 6,500.
D) $13,000.

Question

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The Answer of Thompson Company incurred research and development costs of $100,000 and legal fees of $30,000 to acquire a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Thompson record as Patent Amortization Expense in the first year?
A) $ -0-.
B) $ 3,000.
C) $ 6,500.
D) $13,000.

Thompson Company Incurred Research and Development Costs of $100,000 and Legal