Geithner LLC patented a process it developed in the current year. The patent is expected to create benefits for Geithner over a 10-year period. The patent was issued on April 15th and the legal costs associated with the patent were $43,000. In addition, Geithner had unamortized research expenditures of $15,000 related to the process. What is the total amortization expense Geithner may deduct during the current year?
A) $4,350
B) $2,417
C) $4,108
D) $2,174
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The total amortization expense Geithner may deduct during the current year is $4,350. This is calculated by taking the legal costs associated with the patent ($43,000) and the unamortized research expenditures related to the process ($15,000) and dividing by the 10-year period over which the patent is expected to create benefits. This results in an annual amortization expense of $4,350.

Geithner LLC Patented a Process It Developed in the Current