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Amortization expense

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Dade purchased a patent on January 1, 2003 for $120,000. The patent had a remaining useful life of 10 years at that date. In January 2004, Dade successfully defends the patent at a cost of $54,000, extending the patent's life is 12/31/15.

a.)$12,000
b.)$13,500
c.)$14,500
d.)$18,000

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Solution Summary

The solution explains how to calculate the revised amortization expense after sucessful defense and increae in useful life

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Amortization in 2003 = 120,000/10 = 12,000
Opening book ...

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