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ABC Corporation Acquired a Patent for $600,000

Question 188

Multiple Choice

ABC Corporation acquired a patent for $600,000. Patent have a legal life of 20 years. Because of changing technology, this patent is expected to generate revenue for only 8 years and have no residual value. The annual amortization expense for the patent is:


A) $0.
B) $30,000.
C) $50,000.
D) $75,000.

Correct Answer:

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