Nieland Industries had one patent recorded on

its books as of January 1, 2012. This patent had

a book value of $387,720 and a remaining

useful life of 9 years. During 2012, Nieland

incurred research and development costs of

$111,520 and brought a patent infringement suit

against a competitor. On December 1, 2012,

Nieland received the good news that its patent

was valid and that its competitor could not use

the process Nieland had patented. The company

incurred $126,100 to defend this patent. At what

amount should patent(s) be reported on the

December 31, 2012, balance sheet, assuming

monthly amortization of patents?