Bren Company purchased a patent for $36,000. The patent is expected to have a finite life of 10 years even though its legal life is 17 years. The amortization for the first year is:

Select one:

a. $1,800

b. None of these.

c. $36,000.

d. $3,600.

e. $3,240.

f. $2,118.

Question 11

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(T / F) Plant assets are sometimes wrecked in accidents or destroyed by fire, flood, storm, and other causes. If the asset was not insured, the loss is equal to the book value. If the asset was insured, only the amount of the loss exceeding the amount to be recovered from the insurance company would be considered a loss.

Select one:

True

False