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.

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Definitions:

Exam Area

A designated space or environment where examinations or tests are administrated to evaluate knowledge, skills, or competencies.

Retroactive Interference

A cognitive phenomenon where newly learned information interferes with the recall of previously learned information.

Mnemonics

Memory aids or techniques that use associations, patterns, or other strategies to enhance the recall of information.

Long-Term Memory

The phase or type of memory responsible for the storage of information over extended periods, potentially as long as a lifetime.