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.
C
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Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,500theaccumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $5,300 . The valueof this transaction in the investing section of the statement of cash flows is
a. $12,500 b. $5,300 c. $2,750 d. $2,550
All complete sentences must contain at least one ____
A) adverb B) adjective C) conjunction D) verb
What should you keep in mind when discussing the reasons in a bad-news message?
________ ratios show the funds supplied by creditors and shareholders.
A. Profitability B. Leverage C. Net working capital D. Liquidity E. Current