LO10 On June 2, 2010, Lokar Corporation purchases a patent for $68,000 from the inventor of a new extrusion process. The patent has 12 years remaining on its legal life.

Also, Lokar purchases substantially all the assets of the Barrios Corporation for

$750,000 on September 8, 2010. The values of the assets listed in the purchase agreement are as follows:

Determine the maximum 2010 cost-recovery deductions for the assets purchased.

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Inventory $250,000 Manufacturing equipment 320,000 Patent on compression process 105,000 Goodwill 95,000