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Granite Enterprises acquired a patent for southern research corporation on January 1st 2021 for 4.1 million...

Granite Enterprises acquired a patent for southern research corporation on January 1st 2021 for 4.1 million the patent will be used for five years even though it's legal life is 20 years Rock You Corporation has made a commitment to purchase a patent for granite for 230,000 at the end of five years computer granite's patent amortization for 2021 assuming the straight-line method is used

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Answer #1
Answer
Explanation :
Patent amortization = Cost of patent-Salvage value/Useful life
                               = ($41,00,000 - $2,30,000) / 5
= $387,000 / 5
= $774,000
So, The correct answer is $774,000
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