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Carrying Value of Patent

question 160

Essay

Carrying value of patent.Sisco Co. purchased a patent from Thornton Co. for $620,000 on July 1, 2012. Expenditures of $119,000 for successful litigation in defense of the patent were paid on July 1, 2015. Sisco 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.


Definitions:

Level of Opportunity

A concept referring to the potential for growth and success within a particular market or industry.

Competitive Sales Position

A situation in which a company's product or service competes for preference in a marketplace against other similar offerings.

Account Management Policies

Guidelines and practices designed to manage client accounts effectively and maintain good customer relationships.

Selling and Customer Service Activities

Activities involved in selling a product or service to customers, as well as providing after-sales support to ensure customer satisfaction.

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