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X Company purchased a patent on January 3, year 7 from Y Company for $145,000. An attorney drew up the contract between X & Y
X Company purchased a patent on January 3, year 7 from Y Company for $145,000. An attorney drew up the contract between X & Y at a total cost of $15,000, which was split equally by the parties. The patent had a carrying value of $90,000 on Ys books. X expects to be able to benefit from the patent for 10 years, after which it is expected to be of little to no value. What will be the carrying value of the patent on X Companys December 31, year 8 balance sheet?
$160,000 | ||
$122,000 | ||
$128,000 | ||
$152,500 |
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