In accordance with GAAP, the maximum period over which a patent can be amortized is
A) 20 years.
B) 28 years.
C) 40 years.
D) 50 years.

Question

Quizplus · Accepted Answer

In accordance with GAAP, patents are amortized over their useful lives, which is the lesser of their legal lives (usually 20 years from the date of application) or their economic useful lives. Therefore, the maximum period over which a patent can be amortized is 20 years.

In Accordance with GAAP, the Maximum Period Over Which a Patent