Question
Asked Oct 23, 2019
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Barry Company sells a patent for $25,000. The patent had an acquisition cost of $120,000 and accumulated amortization of $100,000 at the time of the sale. What was the amount of gain or loss recognized on the disposal of the patent?

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Expert Answer

Step 1

Accumulated Amortization:

Accumulated amortization is the total sum of amortization expense recorded for an intangible assets. In other words, it’s the amount of costs that have been allocated to the asset over its useful life.

Step 2

Calculation of amount of gain or loss recog...

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