Final answer:
Option c is true: Goodwill and patents must have been acquired in the purchase of a trade or business to be amortized over 15 years. Goodwill is related to a company's intangible value, while patents secure an invention's exclusive rights for 20 years.
Step-by-step explanation:
The correct answer to the question is option c: In order for goodwill and patents to be amortized over 15 years, they must have been acquired in the purchase of a trade or business. When a company acquires another business, the intangible assets such as goodwill and patents can be amortized over a 15-year period for tax purposes. Goodwill represents the value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology. Patents, on the other hand, provide an incentive to innovate by granting exclusive rights to the use, manufacturing, and selling of the invention for 20 years, after which it can be freely used by others.
The other options are false because goodwill cannot be amortized until it is deemed to have an indefinite useful life (it is tested for impairment annually), not all intangible assets are amortized over the same time period, and copyright protection generally lasts for the life of the author plus 70 years, but this does not equate to the time period for amortization.