On January 1, Year 1, Stiller Company Paid $192,000 to Obtain

Multiple Choice

On January 1, Year 1, Stiller Company paid $192,000 to obtain a patent. Stiller expected to use the patent for 5 years before it became technologically obsolete. The remaining legal life of the patent was 8 years. Based on this information, what is the amount of amortization expense during Year 3 and the book value of the patent as of December 31, Year 3, respectively?

A) $24,000 and $72,000
B) $38,400 and $115,200
C) $24,000 and $120,000
D) $38,400 and $76,800