Gessner LLC patented a process it developed in the current year. The patent is expected to create benefits for Gessner over a 10-year period. The patent was issued on April 15ᵗʰ and the legal costs associated with the patent were $43,000. In addition, Gessner had unamortized research expenditures of $15,000 related to the process. What is the total amortization expense Gessner may deduct during the current year?
A) $2,417.
B) $2,174.
C) $4,108.
D) $4,350.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The amortization is $4,350 ($58,000/120) × 9 months. The amortization period is the shorter of the patent's legal (20 years for utility patents) or useful life (10 years).

Gessner LLC Patented a Process It Developed in the Current