Brief Exercise 12-9
Marin Industries had one patent recorded on its books as of
January 1, 2017. This patent had a book value of $412,800 and a
remaining useful life of 8 years. During 2017, Marin incurred
research and development costs of $97,000 and brought a patent
infringement suit against a competitor. On December 1, 2017, Marin
received the good news that its patent was valid and that its
competitor could not use the process Marin had patented. The
company incurred $93,500 to defend this patent. At what amount
should patent(s) be reported on the December 31, 2017, balance
sheet, assuming monthly amortization of patents?
The amount to be reported |
Get Answers For Free
Most questions answered within 1 hours.