Reynolds purchased a patent from smith co for 2000000 on


Reynolds purchased a patent from Smith co. for $2,000,000 on January 1, 2012. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2022. During 2014, Reynolds determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2014? (Please show all work).

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Financial Accounting: Reynolds purchased a patent from smith co for 2000000 on
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