Alonzo Co Acquires 3 Patents from Shaq Corp

question 75

Multiple Choice

Alonzo Co. acquires 3 patents from Shaq Corp. for a total of $270,000. The patents were carried on Shaq's books as follows: Patent AA: $5,000; Patent BB: $2,000; and Patent CC: $3,000. When Alonzo acquired the patents their fair values were: Patent AA: $20,000; Patent BB: $240,000; and Patent CC: $60,000. At what amount should Alonzo record Patent BB?

• A) $90,000
• B) $180,000
• C) $2,000
• D) $202,500

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