ACCT 306 Sandhill purchased a patent from Vania Co.

Description

ACCT 306 Sandhill purchased a patent from Vania Co.

Sandhill purchased a patent from Vania Co. for $1,190,000 on January 1, 2015. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2025. During 2017, Sandhill determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2017?