Exhibit 22-1 Walters Company Provided the Following Information Relating to Patents

question 28

Multiple Choice

Exhibit 22-1 Walters Company provided the following information relating to patents for 2010:
$\begin{array}{ll}\text { Balance, } 1 / 1 / 2010 & \$ 4,800 \\\text { Purchase of } 10 \text {-year life patent for cash } & 2,000 \\\text { Sale of patent at book value } & (1,400) \\\text {Amortization of patents}&(290) \\\text {Balance, 12/31/2010}&\$5,110\end{array}$


-Refer to Exhibit 22-1.The Cash Flows from Investing Activities section would include a net change related to patents of

• A)$(600)
• B)$(310)
• C)$ 310
• D)$ 600

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Definitions:

Probability

An evaluation of event occurrence likelihood, represented as a numerical value ranging between 0 and 1.

Standard Normal Table

A reference table that provides the area under the curve of the standard normal distribution, often used to find probabilities and critical values.

Mutually Exclusive Events

Two or more events that cannot occur at the same time, making it impossible for them to happen simultaneously in any given trial.

Probabilities

The quantification of how likely an event is to happen, expressed as a number ranging from 0 to 1, with 0 meaning it cannot occur and 1 meaning it will definitely happen.