In January, 2012, Tillicum Corp

Multiple Choice

In January, 2012, Tillicum Corp.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 2017, the product was permanently removed from the market because of a potential health hazard.What amount should Tillicum recognize as an impairment loss for calendar 2017, assuming amortization has been recorded annually using the straight-line method with no residual value?

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