Ely Co Bought a Patent from Baden Corp

Multiple Choice

Ely Co. bought a patent from Baden Corp. on January 1, 2015, for $600,000. An independent consultant retained by Ely estimated that the remaining useful life at January 1, 2015 is 15 years. Its unamortized cost on Baden's accounting records was $300,000; the patent had been amortized for 5 years by Baden. How much should be amortized for the year ended December 31, 2015 by Ely Co.?

A) $0.
B) $30,000.
C) $40,000.
D) $60,000.