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4- Corp X has a patent with a book value of $4,000. Before its pending litigation,...

4- Corp X has a patent with a book value of $4,000. Before its pending litigation, the company assumed a 3-year useful life of this patent with annual cash inflows of $3,000. After a judge awarded the company a decision defending its patent, the company new expectations increased the useful life of the patent to 5 years, its cash flow to $4,000 a year.

Please provide the accounting issues and how the company should account for this?

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