Final answer:
A patent should be amortized over its useful life or twenty years, whichever is longer, to allocate costs over its expected duration.
Step-by-step explanation:
A patent should be amortized over its useful life or twenty years, whichever is longer.
The useful life of a patent refers to the period of time during which the patent is expected to generate economic benefits. It is usually determined by assessing the technological advancements in the industry and the expected obsolescence of the patented invention. However, to provide a maximum level of protection for inventors, patents are typically granted for a fixed period of time, which is generally twenty years. Therefore, a patent should be amortized over its useful life or twenty years, whichever is longer, to ensure that the costs associated with obtaining the patent are properly allocated over its expected duration.