Patent calculation

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October 31, 2021 at 12:32 pm #639556
Nikitagarwal
Participant
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Hi Sir,
Hope you are well!
Ques – is from BPP exam kit , “Dexterity Co” in that 4th question why have they only done 6/12 for the medical research done and not as a whole ? I mean the company itself is acquired at the mid year shouldnt it be half year ?
November 7, 2021 at 9:23 am #640137
P2-D2
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Hi,

They are looking at the value of the patent, which is the $10 million it is worth. It is then amortised for the 6 months, hence the 6/12 applied to the annual amortisation over the eight years.

Thanks
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