On January $1,2024,$ a company purchased a patent for $$375,000$ giving it exclusive rights to

manufacture a new type of synthetic clothing. While the patent had a remaining legal life of $15$ years

at the time of purchase, the company expects the useful life to be only eight more years. In

addition, the company purchased equipment related to production of the new clothing for

$$155,000.$ The equipment has a physical life of $10$ years, but the company plans to use the

equipment only over the patent's service life and then sell it for an estimated $$35,000.$ The

company uses straight$-$line for all long$-$term assets. The amount to expense in $2027$ related to the

patent and equipment should be:

Multiple Choice

$$61,875.$

$$66,500.$

$$70,000.$

$$40,000.$