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You are the accountant for Front Line Pharmaceuticals, inc. In January 2000, the company purchased the patent rights for a new medication from Novac, Inc.,
You are the accountant for Front Line Pharmaceuticals, inc. In January 2000, the company purchased the patent rights for a new medication from Novac, Inc., for $9,000,000. The patent had 15 years remaining as its useful life. In January 2005, Front Line Pharmaceuticals successfully defended its right to the patent in a lawsuir that cost $550,000 in legal fees. A. using the straight-line method, calculate the patent's annual amortization expense for the years before the lawsuit. B. Calculate the revised annual amortization expense for the remaining years after the lawsuit
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