ACC 304 All Assignments ACC 304 All Assignments | Page 209

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.