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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.
c. amortized over a maximum period of 9 years.
d. expensed in 2012.
35. Wriglee, Inc. went to court this year and successfully defended
its patent from infringe-ment by a competitor. The cost of this defense
should be charged to
a. patents and amortized over the legal life of the patent.
b. legal fees and amortized over 5 years or less.
c. expenses of the period.
d. patents and amortized over the remaining useful life of the patent.
36.
Which of the following is not an intangible asset?
a. Trade name