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Distraught After Losing His Cat, Jimmy Corpini Drew Up Some

question 64

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Distraught after losing his cat, Jimmy Corpini drew up some designs for the "Kitty Caller Collar." The collar was designed so that when its wearer strays beyond certain limits, a signal is sent to a receiver, which pinpoints the location of the collar.In anticipation that one day he would get another cat, Jimmy printed off a copy of his design and emailed a copy to himself.A year later, Jimmy moved, and Takashi moved into his home.While cleaning the house, he came across the design.An engineer by trade, and cat lover by nature, Takashi copied the designs and took them to the Patent Office, where he applied for a patent on the collar, which he renamed the "CatchMeow." In due course, the patent was granted.Six months later, on the advice of an entrepreneur friend, Jimmy produced 100 Kitty Caller Collars, and began selling them at pet shows.He was unaware that Takashi had patented his invention.The collars sold quite well, and Jimmy became something of a local star in the community newspapers.Soon thereafter, Jimmy received a letter from a stern lawyer informing him that he had to stop selling his Kitty Caller Collars, because by so doing he was infringing the patent for the CatchMeow.Which of the following is the most accurate assessment?


Definitions:

Basic Financial Statements

Core reports that provide critical financial information about a company, typically including the balance sheet, income statement, and statement of cash flows.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Sale of Land

A financial transaction involving the transfer of ownership of real estate property from one party to another.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset, reducing its original cost to its current book value over time.

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