Unformatted text preview: line amortization for patents. On December 31, 2011, the future cash flows from the patent were expected to be $600,000 per year for the next eight years. The present value of these cash flows, discounted at Harrel's market interest rate, is $2,800,000. At what amount should the patent be carried on the December 31, 2011 balance sheet? Your Answer: $5,000,000 $4,800,000 $4,000,000 CORRECT $2,800,000 Instructor Explanation: $5,000,000 – [($5,000,000 ÷ 10) × 2] = $4,000,000. Chapter 12. Points Received: 4 of 4...
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This note was uploaded on 10/14/2010 for the course ACCT 1234 taught by Professor Gor during the Spring '10 term at DeVry Bellevue.
 Spring '10
 GOR

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