Aramex Company purchased a patent from Datco Company for $220,000 on July 1, 2012. Expenditures of $68,000 for successful litigation in defense of the patent were paid on July 1, 2015. Aramex Company estimates that the useful life of the patent will be 20 years from the date of acquisition. Instructions : Prepare a computation of the carrying value of the patent at December 31, 2015.
Aramex Company purchased a patent from Datco Company for $220,000 on July 1, 2012. Expenditures of $68,000 for successful litigation in defense of the patent were paid on July 1, 2015. Aramex Company estimates that the useful life of the patent will be 20 years from the date of acquisition. Instructions : Prepare a computation of the carrying value of the patent at December 31, 2015.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Aramex Company purchased a patent from Datco Company for $220,000 on July 1, 2012. Expenditures of $68,000 for successful litigation in defense of the patent were paid on July 1, 2015. Aramex Company estimates that the useful life of the patent will be 20 years from the date of acquisition.
Instructions : Prepare a computation of the carrying value of the patent at December 31, 2015.
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