Question
On January 1, 2001, Leo Company purchased a patent for $300,000. Its estimated useful life is 15 years. On January 1, 2006, the company paid
On January 1, 2001, Leo Company purchased a patent for $300,000. Its estimated useful life is 15 years. On January 1, 2006, the company paid $60,000 for legal fees in an successful defense of the patent. Straight-line depreciation is used. The accumulated amortization for the patent for the year December 31, 2006 should be:
Multiple Choice
$17,335
$20,000
$24,286
$126,000
$340,000
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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
978-0071051507
