At what amount should patent be reported on balance sheet


Response to the following problem:

Nieland Industries had one patent recorded on its books as of January 1, 2014. This patent had a book value of $288,000 and a remaining useful life of 8 years. During 2014, Nieland incurred research and development costs of $96,000 and brought a patent infringement suit against a competitor. On December 1, 2014, Nieland received the good news that its patent was valid and that its competitor could not use the process Nieland had patented. The company incurred $85,000 to defend this patent.

At what amount should patent(s) be reported on the December 31, 2014, balance sheet, assuming monthly amortization of patents?

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Financial Accounting: At what amount should patent be reported on balance sheet
Reference No:- TGS02124605

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