Question 27 Larry Corporation purchased a patent for 640,000 on October 1, 2019. It had a useful life of 10 years. On January 1, 2021, Larry spent 36,000 to successfully defend the patent in a lawsuit. Larry feels that as of that date, the remaining useful life is 8 years. What amount should be reported for patent amortization expense for 2021? A. 74,500. B. 93,600. C. 120,000. D. 123,600 Question 28 Lopez Corp. incurred 600,000 of research costs to develop a product and subsequently patent was granted on January 2, 2016. Legal fees and other costs associated with registration of the patent totaled 50,000. On March 31, 2021, Lopez paid 200,000 for legal fees in a successful defense of the patent. The total amount capitalized for the patent through March 31, 2021 should be A. 210,000. B. 250,000. C. 500,000. D. 650,000. Question 29 On January 2, 2018, Koll, Inc. purchased a patent for a new consumer product for 450,000. At the time of purchase, the patent was valid for 12 years; however, the patent's useful life was estimated to be only 8 years due to the competitive nature of the product. On December 31, 2021, the product was permanently withdrawn from the market under governmental order because of a potential health hazard in the product. What amount should Koll charge against income during 2021, assuming amortization is recorded at the end of each year? A. 37,500 B. 56,250 C. 225,000 D. 270,000