A Company Acquires a Patent for a Drug with a Remaining

Multiple Choice

A company acquires a patent for a drug with a remaining legal and useful life of six years on January 1, 2009 for $1,800,000.The company uses straight-line amortization for patents.On January 2, 2011, a new patent is received for a timed-release version of the same drug.The new patent has a legal and useful life of twenty years.The least amount of amortization that could be recorded in 2011 is

A) $300,000.
B) $ 60,000.
C) $ 81,818.
D) $ 69,000.