On January 1, Year 1, Stiller Company Paid $80,000 to Obtain

On January 1, Year 1, Stiller Company paid $80,000 to obtain a patent. Stiller expected to use the patent for 5 years before it became technologically obsolete. The remaining legal life of the patent was 8 years. Based on this information, the amount of amortization expense on the December 31, Year 3 income statement and the book value of the patent on the December 31, Year 3, balance sheet, respectively, would be:

A) $10,000 and $30,000
B) $16,000 and $48,000
C) $10,000 and $50,000
D) $16,000 and $32,000