In January, 2002, Findley Corporation Purchased a Patent for a New

Multiple Choice

In January, 2002, Findley Corporation purchased a patent for a new consumer product for $720,000.At the time of purchase, the patent was valid for fifteen years.Due to the competitive nature of the product, however, the patent was estimated to have a useful life of only ten years.During 2007 the product was permanently removed from the market under governmental order because of a potential health hazard present in the product.What amount should Findley charge to expense during 2007, assuming amortization is recorded at the end of each year?

A) $480,000.
B) $360,000.
C) $72,000.
D) $48,000.