What amount of gain from the sale of the patent

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Reference no: EM131260196

Citrus Company was granted a patent on January 2, 2010, and appropriately capitalized $135,000 of related costs. Citrus was amortizing the patent over its estimated useful life of 15 years. During 2008, Citrus paid $30,000 in legal costs in successfully defending an attempted infringement of the patent. In 2015, after the legal action was finalized, Citrus sold the patent to the plaintiff for $150,000. Citrus’ policy is to take no amortization in the year of disposal. In its 2015 income statement, Citrus should report what amount of gain from the sale of the patent?

Reference no: EM131260196

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