Textbook Problem

A company purchased a patent 4 years ago, and was amortizing that patent over a 10-year useful life. In the current year, the company determined the patent had become worthless. The write-off of the patent asset in the current year is an example of which of the following expense recognition principles?

1. a. associating cause and effect
2. b. immediate consumption
3. c. systematic and rational allocation
4. d. objectivity