On January 15,2005,a corporation was granted a patent on a product.On January 2,2013,to protect its patent,the corporation purchased a patent on a competing product the originally was issued on January 10,2011.Because of its unique plant,the corporation does not feel the competing patent can be used in producing a product.The cost of the competing patent should be

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Since the corporation does not believe the competing patent can be used in producing a product, it does not have any future economic benefits. Therefore, it should be expensed in 2013. Amortization is used to allocate the cost of an asset over its useful life, but if there is no useful life, as in the case of a patent that cannot generate economic benefits, it should be expensed immediately.

On January 15,2005,a Corporation Was Granted a Patent on a Product.On