Question

Companies amortize the cost of a patent over its:________

a. legal life or its useful life, whichever is longer.
b. legal life or its useful life, whichever is shorter.
c. useful life.
d. legal life g.

Answer 1

Answer:

c. useful life.

Explanation:

In the case of the patent, the cost price of the patent could be amortized over its useful life but that should not be more than its legal life. The legal life is 20 years

Therefore as per the given situation, the option c is correct as the cost of the patent could be amortized by the company over its useful life

Therefore the same is to be considered

hence, all other options are incorrect