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On July 1, 2019, Trail Blazers Corp. purchased a patent from Kings Ltd. for $ 1,250,000 and this patent is effective for 15 years. On
On July 1, 2019, Trail Blazers Corp. purchased a patent from Kings Ltd. for $ 1,250,000 and this patent is effective for 15 years. On July 1, 2021, Trail Blazers paid $ 75,000 of legal fees for the litigation in defense of the patent.The verdict from the district court indicates that the Trail Blazers has successfully defend the patent, but such patent is only valid for 10 years after the litigation.
Assuming Trail Blazers Corp. uses straight line amortization:
- Present the carrying value of the patent at December 31, 2021. Show and label all calculations.
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