Final answer:
Geithner LLC can deduct a total amortization expense of $4,108 for the current year, which is calculated by combining the patent-related legal costs and unamortized research expenditures, and then amortizing it over the 10-year expected life span of the patent, prorated for the part of the year since the patent was issued.
Step-by-step explanation:
To calculate the total amortization expense that Geithner LLC may deduct in the current year for its patented process, we must consider the costs associated with the patent and the related research expenditures. The legal costs to secure the patent amounting to $43,000 and the unamortized research expenditures of $15,000 related to the process must be combined and then amortized over the patent's useful life, which is expected to be 10 years. Since the patent was issued on April 15th, only a fraction of the year's amortization expense can be deducted in the current year. This is calculated on a monthly basis, starting from the month the patent was issued.
So, for the current year, you would calculate amortization for 8.5 months (from mid-April to December). The combined cost of $58,000 ($43,000 + $15,000) is divided by 10 years and then multiplied by 8.5/12 to pro-rate for the current year. The calculation would be as follows:
($58,000 / 10) * (8.5 / 12) = $4,108.33.
This results in an amortization expense of $4,108 for Geithner LLC in the current year. Since this is an annual calculation, it would be rounded to a full dollar amount on their tax return, making it $4,108.