Financial Accounting

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What is the Change in Profits After Accounting for Intangibles?


A computer company has \$27,000 in research and development costs (R&D) in the current year and a Patent costing $56,000 purchased 3 years ago. The patent has no salvage and a useful life of 10 years and a legal life of 20 years.

Before recording the activities in intangibles, the net income of the company is \$200,000. What is the amount of net income or loss after these R & D cost and Patent costs are accounted for?