(Q1)A patent is amortized over its expected useful life or 20 years. The expected useful life can be impacted by all of the following except

the federal government renewing the original patent.

product improvements by the patent holder.

technical innovations by a competitor.

a unsuccessful lawsuit against a competitor.

(Q2)

During 2016, Frank Company incurred $200,000 in legal fees in defending a patent with a carrying value of $3,500,000 against an infringement. Farver's lawyers were successful with the defense of the patent. The legal fees should be

capitalized and amortized over the remaining legal life of the patent.

classified as an extraordinary item on the income statement for 2016.

capitalized and amortized over the remaining economic life or legal life of the patent, whichever is shorter.

expensed in 2016 and classified as ordinary expense.