Question

Geithner LLC patented a process it developed in the current year. The patent is expected to create benefits for Geithner over a 10-year period. The patent was issued on April 15th and the legal costs associated with the patent were $43,000. In addition, Geithner had unamortized research expenditures of $15,000 related to the process. What is the total amortization expense Geithner may deduct during the current year?a. $2,417b. $2,174c. $4,108d. $4,350e. None of the choices are correct.

Answer 1

The total amortization expense Geithner may deduct during the current year is d. $4,350

Step-by-step explanation:

The amortisation is (43000 + 15000)/ 120 months * 9 months = $ 4,350

The amortisation period is the shorter of the patent's legal ( 20 years for utility patents) or useful life ( 10 years).