In January, 2005, Targa Corporation Purchased a Patent for a New

Multiple Choice

In January, 2005, Targa Corporation purchased a patent for a new consumer product for $900,000.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 2010 the product was permanently removed from the market
Under governmental order because of a potential health hazard present in the product.What amount should Targa recognize as an impairment during 2010, assuming amortization is recorded at the end of each year?

A) $600,000.
B) $450,000.
C) $90,000.
D) $60,000.