Question
9364 - Mem. Pie Baker, Ltd. purchased a secret fruit pie recipe for $75,000. An additional $10,000 was spent in ng the secret rec pe
9364 - Mem.
Pie Baker, Ltd. purchased a secret fruit pie recipe for $75,000. An additional $10,000 was spent in ng the secret rec pe and safeguarding its contents. Pie Baker expects to keep securing o the reset r recipe a secret indefinitely. Because of taste changes the industry has found that recipes have been used for an average of 3 years. Based on this informaton Pe Baker should
A Capitalize the $85,000 cost and amortize it over 8 years B. Expense the S85.000 cost because the secre: formula cost should not be capitalized. C. Capitalize the $85.000 cost and then amortize it over the period the recipe is to remain a secret
D. Capitalize the $85.000 cost and then amortize it over 40 years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started