A company purchases a patent for $100,000 with a 10-year life. Amortization expense in Year 1 is

A company purchases a patent for $100,000 with a 10-year life. Amortization expense in Year 1 is

A company purchases a patent for $100,000 with a 10-year life. Amortization expense in Year 1 is:

A. $0 (if purchased in Year 1)

B. $10,000

C. $100,000

D. $5,000

Answer: B

Explanation: Straight-line amortization: $100,000 / 10 years = $10,000/year. Purchased in Year 1 → full year expense.