Bluewire Technologies,Inc.obtained a patent for its MegaK2000 product five years ago and should expense the entire amount of the unamortized balance if MegaK2000 is no longer sold.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), when a product is no longer sold, any remaining unamortized balance of the related patent should be expensed immediately as a loss. Therefore, Bluewire Technologies, Inc. should expense the entire amount of the unamortized balance if MegaK2000 is no longer sold.