A corporation must determine their tax liability on certain

A corporation must determine their tax liability on certain intangible assets such as goodwill, copyrights, and patent acquisitions. What method of deduction is the most appropriate?

A) Amortization
B) Depreciation
C) Depletion
D) Royalties

Solution

D) Royalties is the answer.

Amortization is for repayment of long term loans, depn is for fixed assets tangible, depletion is for stock

Hence only Royalties is appropriate