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CBS Corporation Acquired a Patent for $1,000,000

Question 152

Multiple Choice

CBS Corporation acquired a patent for $1,000,000.The patent has a legal life of 20 years.Because of changing technology,this patent is expected to generate revenue for only 10 years and have no residual value.The annual amortization expense for the patent is:


A) $0.
B) $30,000.
C) $50,000.
D) $100,000.

Correct Answer:

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