Carp Corp has a patent with a carrying value of $50,000 on 1/1/16. On 1/1/16, a lawsuit for infringement on the copyright is settled in Carp's favor. The cost of defending the patent was $15,000. The patent is expected to last three (3) more years (i.e. through 2018) and have a $12,000 residual value. How much amortization expense should Carp record in 2016 for this patent?

Select one:

$16,667

$25,667

$17,667

$20,667

$21,667