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Alatorre purchased a patent from Vania Co. for $1,000,000 on January 1, 2018. The patent is...

Alatorre purchased a patent from Vania Co. for $1,000,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. At the beginning of 2020, Alatorre spent $12,000 in lawsuits that defend this patent. It also determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent at December 31, 2020?

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