Ivanhoe Company incurred research and development costs of $ 90000 and legal fees of $ 30000 to develop a patent. The patent has alegal life of 20 years and a useful life of 10 years. What amount should Ivanhoe record as Patent Amortization Expense in the firstyear?O $0.O $ 3000.O $ 6000.O $ 12000.

The cost of the patent includes the legal expenses incurred for the registration and documentation.…

Answered: Ivanhoe Company incurred research and…

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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Ivanhoe Company incurred research and development costs of $ 90000 and legal fees of legal life of 20 years and a useful life of 10 years. What amount should Ivanhoe record as Patent Amortization Expense in the first year? O $0. O $ 3000. O $ 6000. O $ 12000.