Blue Co Has a Patent on a Communication Process

Multiple Choice

Blue Co. has a patent on a communication process. The company has amortized the patent on a straight-line basis since 2009, when it was acquired at a cost of $36 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2013 (before adjusting and closing entries) . What is the appropriate patent amortization expense in 2013?

A) $4 million.
B) $5 million.
C) $10 million.
D) $20 million.