Asked by Paula marques on May 31, 2024
Verified
The cost of a patent with a remaining legal life of 10 years and an estimated useful life of seven years is amortized over 10 years.
Patent
A government-granted exclusive right to an inventor, allowing them to protect their invention from being made, used, or sold by others for a certain period.
Amortized
The process of gradually reducing the cost or value of an asset, or the repayment of a debt over a period of time, through regular payments.
- Identify differences in how tangible and intangible assets are accounted for, including aspects of amortization and expenses related to research and development.
Verified Answer
AR
ashley reevesJun 01, 2024
Final Answer :
False
Explanation :
The cost of a patent is amortized over its estimated useful life, not its remaining legal life, so in this case, it would be amortized over 7 years.
Learning Objectives
- Identify differences in how tangible and intangible assets are accounted for, including aspects of amortization and expenses related to research and development.
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