What is the license agreement you have listed? What is the useful life of the license? At the end of last year, Rick and Kay signed a fifteen-year licensing agreement that allows them to use a specialized diagnostic instrument to identify system pressure variances. This tool allows them to quickly locate leaks until they can develop their own equipment. To obtain the license, Rick and Kay personally paid a total of $35,000 prior to incorporation. The Company reimbursed them with shares of stock in HydroQual. Additionally, on 1/04/20X1, a final license payment of $10,000 was made by the company.

5. What is the license agreement you have listed? What is the useful life of the license?

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