Tsung Company signs a contract to sell the use of its patented manufacturing technology to Herlitz Corp.

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Tsung Company signs a contract to sell the use of its patented manufacturing technology to Herlitz Corp. for 12 years. The contract for this transaction stipulates that Herlitz pays Tsung $21,000 at the end of each year for the use of this technology. Using a discount rate of 4%, what is the value in use of the patented manufacturing technology?

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Accounting Principles Volume 2

ISBN: 9781119786634

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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