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Question - A company developed a new product during 2011, incurring $140,000 in research and development costs, $10,000 in legal fees, and $10,000 in application fees with the U. S. Patent Office. A patent for this product was granted on July 1, 2011 and is expected to have a useful life of 5 years and a legal life of 20 years. How much amortization expense will be reported on the statement for the year-ending December 31, 2011?
a. $1,000
b. $16,000
c. $500
d. $4,000
e. $2,000
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