In January of 2009, Vega Corporation Purchased a Patent at a Cost

Multiple Choice

In January of 2009, Vega Corporation purchased a patent at a cost of $200,000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In 2012, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent. The amount charged to income (expense and loss) in 2012 related to the patent should be:

A) $ 40,000.
B) $ 65,000.
C) $215,000.
D) $ 25,000.