document.write( "Question 1197800: Hello, my problem is: Suppose you are the accountant for a certain pharmaceutical company. In January 2000, the company purchased the patent rights for a new medication from Novae, Inc., for $12,000,000. The patent had 15 years remaining as its useful life. In January 2005, your pharmaceutical company successfully defended its right to the patent in a lawsuit that cost $690,000 in legal fees.\r
\n" ); document.write( "\n" ); document.write( "Using the straight-line method, calculate the patent's annual amortization expense (in $) for the years before the lawsuit. \n" ); document.write( "
Algebra.Com's Answer #848396 by ElectricPavlov(122)\"\" \"About 
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**1. Calculate Annual Amortization Expense**\r
\n" ); document.write( "\n" ); document.write( "* **Formula:**
\n" ); document.write( " * Annual Amortization Expense = Purchase Price / Useful Life\r
\n" ); document.write( "\n" ); document.write( "* **Values:**
\n" ); document.write( " * Purchase Price = $12,000,000
\n" ); document.write( " * Useful Life = 15 years\r
\n" ); document.write( "\n" ); document.write( "* **Calculation:**
\n" ); document.write( " * Annual Amortization Expense = $12,000,000 / 15 years = $800,000 per year\r
\n" ); document.write( "\n" ); document.write( "**Therefore, the patent's annual amortization expense for the years before the lawsuit was $800,000.**
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