Ivanhoe Company incurred research and development costs of $90000 and legal fees of $30000 to develop a patent. The patent has a 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 $12000. O $ 6000. O $0. O $3000.
Ivanhoe Company incurred research and development costs of $90000 and legal fees of $30000 to develop a patent. The patent has a 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 $12000. O $ 6000. O $0. O $3000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Ivanhoe Company incurred research and development costs of $90000 and legal fees of $30000 to develop a patent. The patent has a
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 $ 12000.
O $ 6000.
O $0.
O $3000.
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