On July 1, 2017, Dominica Corp. purchased a technology patent from Surama Ltd. for $ 60,000. On July 1, 2020, Dominica paid $ 12,000 for successful litigation in defence of the patent. On September 1, 2020, Dominica paid $5,000 to perform additional research work relating to the patented technology. Dominica estimates that the useful life of the patent will be 15 years from the date of acquisition.

Instructions

Prepare a calculation of the carrying value of the patent at December 31, 2020. Label all calculations.