Geithner LLC patented a process it developed in the current year.The patent is expected to create benefits for Geithner over a 10-year period.The patent was issued on April 15^th and the legal costs associated with the patent were $43,000.In addition,Geithner had unamortized research expenditures of $15,000 related to the process.What is the total amortization expense Geithner 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 total amortization expense Geithner may deduct during the current year is the sum of the legal costs and the unamortized research expenditures, divided by the patent's expected useful life.

The expected useful life of the patent is 10 years, so the annual amortization expense is ($43,000 + $15,000) / 10 = $5,800.

However, the patent was issued on April 15, so only 8.5 months of amortization expense can be deducted in the current year.

Therefore, the total amortization expense Geithner may deduct during the current year is $5,800 x 8.5 / 12 = $4,350.

The correct answer is D, $4,350.

Geithner LLC Patented a Process It Developed in the Current