Clayton Drug Company purchases a patent from its creator.Which of the following is/are true?
A) A patent has a legal life of up to 40 years.
B) Management's expectations of technological change may lead to a higher economic life than the legal life.
C) Clayton should amortize the acquisition cost of the patent over its expected useful life, equal to the shorter of the economic life and the legal life.
D) Clayton should amortize the acquisition cost of the patent over its legal life.
E) Clayton should amortize the acquisition cost of the patent over its economic life.
Correct Answer:
Verified
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