Detailed Answer
Answer (C) is correct.
Hansen will amortize the cost of the patent on a straight-line basis at the
rate of $1,300 per year ($22,100 ÷ 17). The costs of a successful legal
defense of a patent are capitalized and amortized over the shorter of the
remaining legal life or the estimated useful life of the patent. Because the
legal costs to defend the patent were incurred when the patent had
9.5 years of life remaining, they will be amortized at a rate of $1,200 per
year ($11,400 ÷ 9.5). Because Year 8 only includes a half year’s
depreciation for the legal costs, total amortization expense for that year is
$1,900 ($1,300 + $600).