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Five years ago, Goodman Inc, purchased a patent fo...




Five years ago, Goodman Inc, purchased a patent for $110,000. Lower demand for the product produced under this patent necessitates that an impairment test be made. On the date of purchase, the patent had an estimated useful life of eleven years. It currently has a remaining useful life of four years. The current fair value of the patent is 43,000. Company managment estimates that the patent will generate future cash flows of $12,000 per year for the next four years. Please show all work - The amount of the impairment loss to be recognized is ??,The answers supplied were A-$50,000 B-$60,000 C-$12,000 D-$17,000 NONE of these answers were your answer. Please review and give correct choice showing work thank you


Paper#7921 | Written in 18-Jul-2015

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