Your client just sold their trademark since the product using it was discontinued. The trademark was purchased on January 1, Year 1 and was sold on June 30, Year 3.
The details over the life of the trademark and the sale include:
|Details on Sold Trademark:|
|Accumulated Amortization, June 30, Year 3||\$--?--|
|Useful life, in years||15|
|Cash received when sold||\$200,000|
|Gain or Loss on sale||*\$ — ? —|
What is the amount of the gain or loss on sale of trademark?