FIFA Footballs acquired a patent in 2018 at a çost of $170 million and amortizes the patent on a straight-line basis. During 2021 management decided that the benefits from the patent would be received over a total period of 8 years rather than the 20-year legal life being used to amortize the cost. FIFA's 2021 financial statements should include: Multiple Choice A patent balance of $170.0 million. A patent balance of $102.0 million. Patent amortization expense of $25.5 million. Patent amortization expense of $8.5 million.

FIFA Footballs acquired a patent in 2018 at a çost of $170 million and amortizes the patent on a straight-line basis. During 2021 management decided that the benefits from the patent would be received over a total period of 8 years rather than the 20-year legal life being used to amortize the cost. FIFA's 2021 financial statements should include: Multiple Choice A patent balance of $170.0 million. A patent balance of $102.0 million. Patent amortization expense of $25.5 million. Patent amortization expense of $8.5 million.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

FIFA Footballs acquired a patent in 2018 at a çost of $170 million and amortizes the patent on a straight-line
basis. During 2021 management decided that the benefits from the patent would be received over a total
period of 8 years rather than the 20-year legal life being used to amortize the cost. FIFA's 2021 financial
statements should include:
Multiple Choice
A patent balance of $170.0 million.
A patent balance of $102.0 million.
Patent amortization expense of $25.5 million.
Patent amortization expense of $8.5 million.

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