Pina Colada Industries Ltd. had one patent recorded on its books as at January 1, 2020. This patent had a book value of $364800 and a remaining useful life of 8 years. During 2020, Pina Colada incurred research costs of $139,800 and brought a patent infringement suit against a competitor. On December 1. 2020, Pina Colada received the good news that its patent was valid and that its competitor could not use the process Pina Colada had patented. The company spent $110.500 to defend this patent. At what amount should the patent be reported on the December 312020 statement of financial position, assuming monthly straight-line amortization of patents? Patent, carrying amount, 12/31/20 24
Pina Colada Industries Ltd. had one patent recorded on its books as at January 1, 2020. This patent had a book value of $364800 and a remaining useful life of 8 years. During 2020, Pina Colada incurred research costs of $139,800 and brought a patent infringement suit against a competitor. On December 1. 2020, Pina Colada received the good news that its patent was valid and that its competitor could not use the process Pina Colada had patented. The company spent $110.500 to defend this patent. At what amount should the patent be reported on the December 312020 statement of financial position, assuming monthly straight-line amortization of patents? Patent, carrying amount, 12/31/20 24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Pina Colada Industries Ltd. had one patent recorded on its books as at January 1, 2020, This patent had a book value of $364800 and
a remaining useful life of 8 years. During 2020, Pina Colada incurred research costs of $139,800 and brought a patent infringement
suit against a competitor. On December 1. 2020, Pina Colada received the good news that its patent was valid and that its competitor
could not use the process Pina Colada had patented. The company spent $110.500 to defend this patent. At what amount should the
patent be reported on the December 312020 statement of financial position, assuming monthly straight-line amortization of patents?
Patent, carrying amount, 12/31/20
%24
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