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Prescott Company buys 70 of Sound Inc on January 1 2022 .pdf

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Prescott Company buys 70% of Sound Inc. on January 1, 2022. At the date of acquisition, it is determined that Sound has unrecorded patent with fair value of $30,000, an estimated life of 8 years and straight-line amortization. On the consolidated balance sheet at December 31, 2023, at what value is the patent reported? a. $21,000 b. $18,750 c. $26,250 d. $22,500.

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Prescott Company buys 70% of Sound Inc. on January 1, 2022. At the date of acquisition, it is determined that Sound has unrecorded patent with fair value of $30,000, an estimated life of 8 years and straight-line amortization. On the consolidated balance sheet at December 31, 2023, at what value is the patent reported? a. $21,000 b. $18,750 c. $26,250 d. $22,500

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