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On January 1, 2014, Flop Co. purchased a patent for $714,000. The patent is being amortized over its remaining legal life of fifteen years expiring
On January 1, 2014, Flop Co. purchased a patent for $714,000. The patent is being amortized over its remaining legal life of fifteen years expiring on December 31, 2028. During 2019, Flop determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2019?
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