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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.