On January 2, year 1, Lava, Inc. purchased a patent for a new
consumer product for $90,000. At the time of purchase, the patent
was valid for fifteen years; however, the patent’s useful life
was estimated to be only ten years due to the competitive nature of the product. On December 31, year 4, the product was permanently
withdrawn from sale under governmental order because of
a potential health hazard in the product. What amount should
Lava charge against income during year 4, assuming amortization
is recorded at the end of each year?