Uncle Jack and Aunt Leigh own, Ferris' Dental Clinic in Siloam Springs, Arkansas. Aunt Leigh just got a patent for her invention which should make the work of dental technicians easier and faster. Uncle Jack said that she'll have to amortize the patent, on their taxes, over the next four years. Aunt Leigh replied that they would have to do straight-line depreciation over the next four years on their tax forms. Explain to your Aunt and Uncle what they can expect to do, from an accounting standpoint, and point out the reasons for their incorrect assumptions

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From an accounting standpoint Uncle Jack and Aunt Leigh need to understand the distinction between a... View the full answer