Your Company Pays $620,000 for a Patent That Has 10

Multiple Choice

Your company pays $620,000 for a patent that has 10 years remaining.Each year,your company should:

A) debit Amortization Expense for $62,000 and credit Accumulated Depreciation for $62,000.
B) debit Intangible assets and credit Accumulated Amortization for an amount equal to 20% of book value.
C) debit Amortization expense for $62,000 and credit Patent for $62,000.
D) report no Amortization Expense because patents are not subject to amortization.