Loop Inc. has a patent on new boxing training equipment. The patent was purchased from smith Inc.
Fantastic news! We've Found the answer you've been seeking!
Question:
Loop Inc. has a patent on new boxing training equipment. The patent was purchased from smith Inc. on January 1, Year 1 for $150,000. It is estimated that the patent will have an economic useful life to the company of 5 years, but has a remaining legal life of 7 years. At the beginning of Year 3, Loop Inc. successfully defended the patent with a total legal fee of $12,000, which made the firm to extend the useful life by two additional years. How much is the amortization expense for the patent in Year 3.
A. $0
B.30,000
C. 20,400
D.12,000
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Posted Date: