On January 1, 2018, Don Company purchased a patent from an original patentee for 2,400,000. The remaining

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2018, Don Company purchased a patent from an original patentee for 2,400,000. The remaining legal life of the patent is 15 years but the useful life is only 12 years. On January 1, 2019, the entity paid 550,000 in successfully defending the patent in an infringement suit files against the entity. On January 1, 2020, the entity acquired a competing patent for 1,500,000. The competing patent has a remaining legal life of 15 years but it is not to be used because it was intended to protect the original patent. What is the carrying amount of the patent on Dec 31, 2020?

 

Question 33 options:

 

3,150,000

 

3,600,000

 

3,200,000

 

3,500,000

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