LRF Corporation purchased a patent for $450,000 on September 1, 2006. It had a useful life of 10 years. On January 1, 2008, LRF spent $110,000 to successfully defend the patent in a lawsuit. LRF feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2008?

Question

LRF Corporation purchased a patent for $450,000 on September 1, 2006. It had a useful life of 10 years. On January 1, 2008, LRF spent $110,000 to successfully defend the patent in a lawsuit. LRF feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2008? 
        $103,000 
        $100,000 
        $94,000 
        $78,000

Ms. Sue · Answer

My goodness! Six accounting questions from six different names -- but all on the same computer.

You might have a better chance of getting help if you post what you know about the answers.

Note that Jiskha volunteers do not do homework.