Question
Oracle Corporation acquired a patent for $40,000,000. At the end of the year, the estimated future cash flows from the patent amount to $30,000,000. Perform
Oracle Corporation acquired a patent for $40,000,000. At the end of the year, the estimated future cash flows from the patent amount to $30,000,000. Perform an impairment test and determine if an impairment loss needs to be recognized.
Description | Amount |
Patent Cost | $40,000,000 |
Fair Value of Future Cash Flows | $30,000,000 |
Impairment Loss |
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
