During 2006, Volvo Machine Company Spent $352,000 on Research and Development

Multiple Choice

During 2006, Volvo Machine Company spent $352,000 on research and development costs for an invention. This invention was patented on January 2, 2007, at a nominal cost that was expensed in 2007. The patent has a legal life of 17 years and an estimated useful life of 8 years. In January 2011, Volvo paid $32,000 for legal fees in a successful defense of the patent. Amortization for 2011 should be

A) $2,462.
B) $8,000.
C) $32,000.
D) $52,000.