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Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2016, for $4 million. The patent will be used for 5 years, even

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Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2016, for $4 million. The patent will be used for 5 years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $200,000 at the end of five years. Compute Granite's patent amortization for 2016, assuming the straight-line method is used

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