FIFA Footballs acquired a patent in 2021 at a cost of $150 million and amortizes the patent on a straight-line basis. During 2024 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 2024 financial statements should include: Multiple Choice a patent balance of $150 million. a patent balance of $102 million. patent amortization expense of $15 million. patent amortization expense of $7.5 million.
FIFA Footballs acquired a patent in 2021 at a cost of $150 million and amortizes the patent on a straight-line basis. During 2024 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 2024 financial statements should include: Multiple Choice a patent balance of $150 million. a patent balance of $102 million. patent amortization expense of $15 million. patent amortization expense of $7.5 million.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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FIFA Footballs acquired a patent in 2021 at a cost of $150 million and amortizes the patent on a straight-line basis. During 2024 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 2024 financial statements should include: Multiple Choice a patent balance of $150 million. a patent balance of $102 million. patent amortization expense of $15 million. patent amortization expense of $7.5 million.
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