On January 1, Year 1, Stiller Company paid $80,000 to obtain a patent. Stiller expected to use the patent for 5 years before it became technologically obsolete. The remaining legal life of the patent was 8 years. Based on this information, what is the amount of amortization expense during Year 3 and the book value of the patent as of December 31, Year 3, respectively?
A. $10,000 and $30,000
B. $10,000 and $50,000
C. $16,000 and $32,000
D. $16,000 and $48,000
Answer: C
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