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[] John Doe successfully creates an invention and, on January 1, Year One, receives a patent that gives him the exclusive rights to that invention
[] John Doe successfully creates an invention and, on January 1, Year One, receives a patent that gives him the exclusive rights to that invention for twenty years. One year later, John Doe sells all of his rights to the patent to Nahquan Corporation for $3 million. Nahquan pays another $400,000 to a legal firm to help ensure that the right is properly transferred. Nahquan hopes to use the patent for five years and then sell it for its residual value of $200,000. On December 31, Year Two, another company offers to pay Nahquan $4 million for this intangible asset but that amount is rejected as being too low. On its balance sheet at that time, what balance is reported by Nahquan for the patent? $2,560,000 $3,040,000 $3,221,053 $2,760,000 16 of 2
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