Multiple Choice
On July 1 2018 Graunke Company purchased a patent from Chimney Rock Company for $8000000.It was estimated that the patent has a remaining useful life of 4 years.On July 1 2022 Graunke retired the asset.Use the following tabular analysis to make the adjustment for retirement assuming that the cost has been fully amortized. 
A) Increase Expenses and decrease Patents $2000000.
B) Decrease Patents and increase Expenses $1000000
C) Increase Revenues and decrease Patents $8000000.
D) The Patent account would have a zero balance so no entry would be needed.
Correct Answer:
Verified
Correct Answer:
Verified
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