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Companies can amortize a patent for a period that cannot exceed ________ years.

User Cold
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Answer:

20 years

Step-by-step explanation:

Amortization refers to the process of lowering book value in case of intangible assets or services such as copyrights, trademarks , patents, etc.

It simply refers to spreading the cost of an intangible asset over it's estimated life.

A patent refers to an exclusive right to use a certain technology or a method which cannot be used by anybody else.

As per US Generally accepted accounting principles, patents are to be amortized over period of their estimated benefits or a period of 20 years whichever is earlier.

This means the amortization of patents cannot exceed a period of 20 years.

User PaulS
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