Peck Tech Purchased a Patent at the Beginning of 2011 for for $400,000

Multiple Choice

Peck Tech. purchased a patent at the beginning of 2011 for $400,000. The patent's legal life was 20 years, but economic benefits were expected for 10 years. Also, during 2011, Peck's incurred research and development costs of $200,000. The book value of the patents at December 31, 2011, is:

A) $400,000
B) $360,000
C) $350,000
D) $560,000