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 it is less than 20 years. If the useful life of the patent is longer than 20 years, it should be amortized over a period of 20 years. This is based on the matching principle in accounting, which requires expenses to be recognized in the same period as the revenue they generate. Amortization reflects the allocation of the cost of the patent over its useful life, which in turn matches the expense to the revenue generated by the patent. As such, the useful life of the patent should be determined, and the cost should be amortized over that period.

A Purchased Patent Has a Legal Life of 20 Years