Jason purchases a patent at a cost of $24,000 . The patent has 8 years of legal life remaining from the date of purchase.
I. If the patent is the only asset Jason purchased, he must amortize the patent over 15 years.
II. If the patent was part of the purchase of all the assets of a business, he must amortize the patent over 15 years
a. Only statement I is correct.
b. Only statement II is correct.
c. Both statements are correct.
d. Neither statement is correct.
b
You might also like to view...
The amount by which a project increases the value of the firm is given by the project’s ______.
A. accounting rate of return B. net present value (NPV) C. internal rate of return (IRR) D. present value
Many opponents of globalization have claimed that there is a huge gap between the world's rich and poor and that _____ has caused that gap to increase.
Fill in the blank(s) with the appropriate word(s).
The 360-degree process has been for ______.
A. development purposes B. administrative C. determination of pay scale D. A and B
Lean production is an operating philosophy or mindset that essentially attempts to minimize the impact of system variability and flaws in forecasting through the use of high safety stock inventories
a. True b. False Indicate whether the statement is true or false