Problem: Santo Corporation was granted a patent on a product on January 1, 1999. To protect its patent, the corporation purchased on January 1, 2008 a patent on a competing product which was originally issued on January 1, 2004. Because of its unique plant, Santo Corporation does not feel the competing patent can be used in producing a product. The cost of the competing patent should be
a amortized over a maximum period of 20 years.
b amortized over a maximum period of 16 years.
c amortized over a maximum period of 11 years.
d expensed in 2