In January 2014, Western Co purchased a patent for $750,000 that had an estimated remaining economic life of ten years. On January 2, 2017, the company incurred $140,000 in legal fees to successfully defend the validity of the patent. In January 2019, the company incurred $88,000 in legal fees in a new infringement lawsuit. In this situation, the lawsuit was lost, and the patent was determined to

be worthless as a result. What is the expense to be recognized in 2019 by Western with regard to the patent?
A) $750,000
B) $150,000
C) $475,000
D) $563,000


D

Business

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