Which of the following is the proper accounting treatment for a purchased patent?

Question

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A purchased patent must be capitalized and amortized over its useful life, which is generally considered to be 20 years or less. This means that the cost of the patent is spread out over the period of time during which it is expected to provide economic benefits. This accounting treatment is in accordance with Generally Accepted Accounting Principles (GAAP). Option A is incorrect because the patent has future economic benefits, and should not be expensed all at once. Options B and D are incorrect because they do not follow GAAP guidance for amortizing patents.

Which of the Following Is the Proper Accounting Treatment for a Purchased