Larkspur had one patent recorded on its books as of January 1,
2017. This patent had a book value of $144,000 and a remaining
useful life of 6 years. During 2017, Larkspur incurred research and
development costs of $202,300 related to this patent and was sued
by a competitor to nullify the patent. On September 1, 2017, the
Court found that Larkspur’s patent was valid and that its
competitor could not use the process Larkspur had patented. The
company incurred $60,800 to defend this patent. At what amount
should patent(s) be reported on the December 31, 2017, balance
sheet, assuming monthly amortization of patents?
Carrying amount 12/31/17 |
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