Question

Mila and Dante have been working to develop a new video game in their spare time, and they've saved enough to protect their work with a $5,000 patent. Their amortized expense for the first year is $250. How long will the patent last?

A. 15 years
B. 20 years
C. 25 years
D. 30 years

Answer 1

Answer: The Answer Is 20 Years and for second question 1,750

Step-by-step explanation: So, for an amortized expense the first-year payment will subtracted from the $5,000 patent. This will continue until the payment of the patent is run out. so, we can do 5000/250 (250 accounting for each year) to get 20. so, in 20 years the patent will run out.

This will help for the second question you had as well being "What will the accumulated amortization of Mila and Dante’s $5,000 patent be after seven years, given a $250 amortized expense each year?" Just to simplify it multiply 250*7 to get 1,750. This will be the amortized expense in 7 years.

Hope this helped!

Answer 2

The correct answer is option B (20 years)