Larry Was the Holder of a Patent on a Video

question 109

Essay

Larry was the holder of a patent on a video game.During 2015,he sold all substantial rights in the patent for $365,000 in cash and a 3% royalty on the purchaser's first $10,200,000 of sales each year related to the product in which the patent is incorporated.Larry had not reduced the patent to practice.He had a $86,000 basis for the patent.During 2015,he received $30,000 in royalties.What is the nature and amount of Larry's gain?

---

Definitions:

Independent

Not influenced or controlled by others; capable of thinking or acting for oneself.

Standard Deviations

A statistical measure indicating the dispersion or spread of a set of numbers from their mean; it shows how much variation there is from the average.

Independent

Not influenced by or subject to another, capable of thinking or acting for oneself.

Standard Deviations

An estimator of the dispersion level or variability in a sequence of numbers.