Calculate the balance in the patent account


Banana Corporation had the following transactions relating to a patent:

  • January 1, 2010: Purchased patent for $2,000,000. The patent had fifteen years remainnig although Banana expected to use it for only ten.
  • January 1, 2012: Successfully defended patent in a lawsuit.  Spent $250,000 on attorney fees.
  • January 1, 2013: Banana determined that the patent would become useless at the end of 2018.
  • Calculate the balance in the patent account as of December 31, 2013.  Show your calculations.

 

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Accounting Basics: Calculate the balance in the patent account
Reference No:- TGS0553106

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