Limited-Life Indefinite-Life
a. |
Yes |
Yes |
b. |
Yes |
No |
c. |
No |
Yes |
d. |
No |
No |
33. The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser ' s patented products should be
a. charged off in the current period. b. amortized over the legal life of the purchased patent.
c. added to factory overhead and allocated to production of the purchaser ' s product.
d. amortized over the remaining estimated life of the original patent covering the product whose market would have been impaired by competition from the newly patented product.
34. Broadway Corporation was granted a patent on a product on January 1, 2001. To protect its patent, the corporation purchased on January 1, 2012 a patent on a competing product which was originally issued on January 10, 2008. Because of its unique plant, Broadway Corporation does not feel the competing patent can be used in producing a product. The cost of the competing patent should be
a. amortized over a maximum period of 20 years. b. amortized over a maximum period of 16 years.