A purchased patent has a legal life of 20 years. It should be

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Quizplus · Accepted Answer

The patent should be amortized over its useful life if less than 20 years. This is because the legal life of 20 years represents the maximum amount of time that the patent can be protected, but its actual useful life may be shorter depending on factors such as technological advancements or market changes. Therefore, it is appropriate to reflect the consumption of the asset over its useful life through amortization. If the useful life is not determinable, the patent should be amortized over its legal life of 20 years.

A Purchased Patent Has a Legal Life of 20 Years