FIFA Footballs acquired a patent in 2018 at a çost of $170 million and amortizes the patent on a straight-line basis. During 2021 management decided that the benefits from the patent would be received over a total period of 8 years rather than the 20-year legal life being used to amortize the cost. FIFA's 2021 financial statements should include: Multiple Choice A patent balance of $170.0 million. A patent balance of $102.0 million. Patent amortization expense of $25.5 million. Patent amortization expense of $8.5 million.

FIFA Footballs acquired a patent in 2018 at a çost of $170 million and amortizes the patent on a straight-line basis. During 2021 management decided that the benefits from the patent would be received over a total period of 8 years rather than the 20-year legal life being used to amortize the cost. FIFA's 2021 financial statements should include: Multiple Choice A patent balance of $170.0 million. A patent balance of $102.0 million. Patent amortization expense of $25.5 million. Patent amortization expense of $8.5 million.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7MC

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