A Patent Was Purchased for $670,000 with a Legal Life

Multiple Choice

A patent was purchased for $670,000 with a legal life of 20 years. Management estimates that the patent has an 12-year economic life. The entry to record amortization would include:

A) an increase in amortization expense for $33,500.
B) an increase in research and development expense for $670,000.
C) a decrease in patent for $55,833.
D) an increase in accumulated amortization for $670,000.