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Patent #1: Acquired: January 1, 2017 Cost: $60,000 Life: Useful life 10 years Legal life 20 years The following transactions may affect intangible assets in

Patent #1:

Acquired: January 1, 2017

Cost: $60,000

Life: Useful life 10 years

Legal life 20 years

The following transactions may affect intangible assets in 2018.

Jan. 1 Paid $12,000 in legal costs to successfully defend Patent #1 against infringement by another company. The life of the patent was increased by 3 years.

Jan. May Developed a new product, incurring $30,000 in research and development costs, $10,000 in legal fees, and $10,000 in application fees with the U.S. Patent Office. Patent #2 for this product was granted on July 1 and is expected to have a useful life of 5 years and a legal life of 20 years.

Compute the book value of Patent #1 on December 31, 2018:

A

$66,000

B

$65,550

C

$65,864

D

$58,667

E

$60,500

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