Question: At the beginning of the year, a company purchases a patent for $ 2 , 4 0 0 , 0 0 0 . The remaining

At the beginning of the year, a company purchases a patent for $2,400,000. The remaining legal life of the patent is 12 years, but management estimates that the patent will generate additional revenue for the next 16 years because there are currently no known competitors. At the end of the first year, management calculates straight-line amortization to be years). Which of the following statements is correct?
Multiple Choice
Management should amonize the asset over 12 years.
Management's calculation is correct.
Management should not amortize the asset umi hs useful life becomes more evident.
Manogement should amortize the asset over 20 yearal.
At the beginning of the year, a company purchases

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