In early January 2018, Lerner Corporation applied for a patent, incurring legal costs of $60,000. In January 2019, Lerner incurred $9,000 of legal fees in a successful defense of its patent.

Compute the 2020 amortization and the 12/31/20 carrying value, assuming that at the beginning of 2020, based on new market research, Lerner determines that the recoverable amount of the patent is $48,000. Remaining useful life is 8 years.

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Patent is an intangible asset Initially it is recorded at cost the cost of patent is amor... View the full answer