Larry Was the Holder of a Patent on a Video

question 1

Essay

Larry was the holder of a patent on a video game. During 2017, 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 2017, he received $30,000 in royalties. What is the nature and amount of Larry's gain?

---

Definitions:

SES Families

Families categorized by their Socioeconomic Status (SES), which often combines factors such as income, education level, and occupation.

IQ Scores

Numerical measurements derived from standardized tests designed to assess human intelligence and cognitive abilities relative to a population.

Identical Twins

Twins who are genetically identical, having developed from a single fertilized egg that split into two.

Enriched Environment

An enriched environment refers to settings or conditions that provide enhanced sensory, cognitive, and social stimulation, which can improve development and learning outcomes in both animals and humans.