What amount should forest report as loss from obsolescence

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Problem 1: On January 2, 2018, Forest Co. purchased a patent for a new consumer product for 90,000. At the time of purchase, the patent was valid for 15 years, however, the patent's useful life was estimated to be only 10 years due to the competitive nature of the product. On December 31, 2020, the product was permanently withdrawn from sale under governmental order because of a potential health hazard in the product. What amount should Forest report as loss from obsolescence during 2020, assuming amortization is recorded at the end of each year?

Option 1: 72,000
Option 2: 63,000
Option 3: 54,000
Option 4: 9,000

Reference no: EM132765503

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