On June 2, 2010, Lokar Corporation purchases a patent for $68,000 from the inventor of a new extrusion process. The patent has 12 years remaining on its legal life. Also, Lokar purchases substantially all the assets of the Barrios Corporation for $750,000 on September 8, 2010. The values of the assets listed in the purchase agree- ment are as follows:
|
Inventory
|
$250,000
|
|
Manufacturing equipment
|
320,000
|
|
Patent on compression process
|
105,000
|
|
Goodwill
|
95,000
|
Determine the maximum 2010 cost-recovery deductions for the assets purchased.