Your Company Pays $620,000 for a Patent That Has 10

Multiple Choice

Your company pays $620,000 for a patent that has 10 years remaining.Each year,your company should:

A) debit amortization expense for $62,000 and credit accumulated amortization for $62,000.
B) debit intangible assets and credit accumulated amortization for an amount equal to 20% of book value.
C) debit amortization expense for $31,000 and credit intangible assets for $31,000.
D) report no amortization expense because patents are not subject to amortization.