Kerr Company Purchased a Patent on January 1, 2006 for $180,000.The

Multiple Choice

Kerr Company purchased a patent on January 1, 2006 for $180,000.The patent had a remaining useful life of 10 years at that date.In January of 2007, Kerr successfully defends the patent at a cost of $81,000, extending the patent's life to 12/31/18.What amount of amortization expense would Kerr record in 2007?

A) $18,000
B) $20,250
C) $21,750
D) $27,000