Brief Exercise 12-9

Metlock Industries had one patent recorded on its books as of January 1, 2017. This patent had a book value of $374,400 and a remaining useful life of 8 years. During 2017, Metlock incurred research and development costs of $98,000 and brought a patent infringement suit against a competitor. On December 1, 2017, Metlock received the good news that its patent was valid and that its competitor could not use the process Metlock had patented. The company incurred $93,500 to defend this patent. At what amount should patent(s) be reported on the December 31, 2017, balance sheet, assuming monthly amortization of patents?

The amount to be reported is: ____________

***The answer is NOT $565,900**