butty68
butty68
20.11.2019 • 
Business

Truffle inc. acquired a patent on january 1, 2014 for $7,800,000. it was expected to have a 10 year life and no residual value. truffle uses straight-line amortization for its patents. on december 31, 2017, the expected future cash flows from the patent are $518,000 per year for the next six years. the present value of these cash flows, discounted at truffle's market interest rate, is $2,120,000. what amount, if any, of impairment loss will be reported on truffle's 2017 income statement? (a)$1,340,000.(b)$2,120,000.(c)$2,560,000.(d)$4,680,000.

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