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In January, 2013, Ivanhoe Corporation purchased a patent for a new consumer product for $966000. At the time of purchase, the patent was valid for
In January, 2013, Ivanhoe Corporation purchased a patent for a new consumer product for $966000. At the time of purchase, the patent was valid for 15 years. Due to the competitive nature of the product, however, the patent was estimated to have a useful life of only 10 years. During 2018 the product was determined to be obsolete due to a competitors new product. What amount should Ivanhoe charge to expense during 2018, assuming amortization is recorded at the end of each year?
$644,000
$483,000
$96,600
$64,400
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