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What the patent book value should be

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Reference no: EM132793741

Problem 1: Hulou Co. spent $200,000 on research and developed a new testing device for early-stage cancer, and obtains a patent for the device. The market value of this patent is estimated to be $500,000. In Hulou's Balance Sheet, the patent's book value should be:

Option 1: $200,000

Option 2: the patent cannot be recognized as Hulou's asset.

Option 3: $500,000

Option 4: $300,000

Reference no: EM132793741

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