At what amount should the patent be carried on the december, Accounting Basics

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At what amount should the patent be carried on the december

Harrel Company acquired a patent on an oil extraction technique on January 1, 2010 for $5,000,000. It was expected to have a ten-year life and no residual value. Harrel uses straight-line amortization for patents. On December 31, 2011, the future cash flows from the patent were expected to be $600,000 per year for the next eight years. The present value of these cash flows, discounted at Harrel's market interest rate, is $2,800,000. At what amount should the patent be carried on the December 31, 2011 balance sheet?

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Accounting Basics: At what amount should the patent be carried on the december

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Accounting Basics: At what amount should the patent be carried on the december

Reference No:- TGS0101597

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : What are strategic objectives

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Q : Compute mm''s current income tax expense

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: At what amount should the patent be carried on the december

Reference No:- TGS0101597

Recent Questions Asked Accounting Basics

Q : What are strategic objectives

Q : Forecast financial measures

Q : Calculate the firm''s operating cycle

Q : Compute mm''s current income tax expense

Q : At what amount should the patent be carried on the december

Q : Preferred style-approach to leadership

Q : What horton would record land-new at and record a gain

Q : How many exemptions should he claim on his tax return

Q : Effective approaches to train employees

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