Use the following information to answer the next 2 questions: Patent #1: Acquired: January 1, 2014 Cost: $60,000 Life: Useful life 10 years Legal life 20 years The following transactions may affect intangible assets in 2015. Jan. 1 Paid $12,000 in legal costs to successfully defend Patent #1 against infringement by another company. The life of the patent was increased by 3 years. Jan. May Developed a new product, incurring $30,000 in research and development costs, $10,000 in legal fees, and $10,000 in application fees with the US. Patent Ofce. Patent #2 for this product was granted on July 1 and is expected to have a useful life of 5 years and a legal life of 20 years. 7. Compute the book value of Patent #1 on December 31, 2015: A. $66,000 B. $ 65,550 c. $65,864 D $58,667 E. $60,500