Question: On January 1, 2007, Taft Co. purchased a patent for $714,000. The patent is being amortized over its remaining legal life of fifteen years expiring

On January 1, 2007, Taft Co. purchased a patent for

$714,000. The patent is being amortized over its remaining legal life of fifteen years expiring on January 1, 2019. During 2010, Taft determined that the economic benefits of the patent would not last longer than ten 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, 2010?

a. $428,400

b. $489,600

c. $504,000

d. $523,600

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