Santo Corporation Was Granted a Patent on a Product on January

Multiple Choice

Santo Corporation was granted a patent on a product on January 1, 2010.To protect its patent, the corporation purchased on January 1, 2009 a patent on a competing product which was originally issued on January 10, 2005.Because of its unique plan, Santo Corporation does not feel the competing patent can be used in producing a product.The cost of the competing patent should be

A) amortized over a maximum period of 20 years.
B) amortized over a maximum period of 16 years.
C) amortized over a maximum period of 11 years.
D) expensed in 2009.