On January 2, 2007, Mortensen, Ltd

Multiple Choice

On January 2, 2007, Mortensen, Ltd.purchased a patent for a new consumer product for $90,000.At the time of purchase, the patent was valid for 15 years; however, the patent's useful life was estimated to be only 10 years due to the competitive nature of the product.
On December 31, 2010, the product was permanently withdrawn from sale under
Governmental order because of a potential health hazard in the product.What amount should Mortensen charge against income during 2010, assuming amortization is recorded
At the end of each year?

A) $72,000.
B) $63,000.
C) $54,000.
D) $9,000.