At the end of 2013, Clock Products, Inc. determined that one of its patents was worthless. The patent had a cost of $300,000. The patent had been amortized for 5 years of its estimated 15-year legal life. Which of the following statements is correct?

Clock Products must continue to amortize the patent over its remaining 10 years of life.

The patent must be reduced to 5/15, or 33.3% of its original cost and amortized over the remaining 10 years.

The remaining unamortized cost must be removed from the accounting records and treated as a loss on the income statement.

Clock Products must correct its financial statements for the past five years, so that the entire cost is allocated to that five-year period