RB Holdings Ltd. purchased the net assets of Herbert BBQ Ltd. in early January 2020 for $6.171,000. RB Holdings had appraisals conducted which indicated that the fair values of the assets purchased and liabilities assumed were as follows: Inventory Buildings $1,205,000 748,000 Equipment 1,346,000 Patent 337,000 Accounts payable 371,000 Bank loan payable 709,000 The patent acquired has 15 years remaining in its useful life. RB's management determined that it would contribute to the generation of revenues for 8 years after which it would be obsolete.