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Question - Splish Brothers had one patent recorded on its books as of January 1, 2017. This patent had a book value of $136,800 and a remaining useful life of 6 years. During 2017, Splish incurred research and development costs of $201,300 related to this patent and was sued by a competitor to nullify the patent. On September 1, 2017, the Court found that Splish's patent was valid and that its competitor could not use the process Splish had patented. The company incurred $69,760 to defend this patent. At what amount should patent(s) be reported on the December 31, 2017, balance sheet, assuming monthly amortization of patents?
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