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Wildhorse Company acquired a patent on an oil extraction technique on January 1, 2025 for $4350000. It was expected to have a 10- year life
Wildhorse Company acquired a patent on an oil extraction technique on January 1, 2025 for $4350000. It was expected to have a 10- year life and no residual value. Wildhorse uses straight-line amortization for patents. On December 31, 2026, the future cash flows expected from the patent were $652000 per year for the next eight years. The fair value of the patent is $2094000. At what amount should the patent be carried on the December 31, 2026 balance sheet
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