Jason Inc. purchases a patent with a legal life of 10 years but due to technology, the
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Jason Inc. purchases a patent with a legal life of 10 years but due to technology, the patent is expected to not have relevance after 5 years. The total capitalized costs for the patent are $10,000. After two years of amortization, there is a change in technology which suggests that the patent costs may not be recoverable. The estimate of the future cash flows from the patent are $2,000. The fair value estimation is $1,000. How much impairment loss should be recorded?
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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