for 2015 , assuming that amortization is recorded on interest payment dates using the effective-interest method .
5 ) Sisco Co . purchased a patent from Thornton Co . for $ 620,000 on July 1 , 2012 . Expenditures of $ 119,000 for successful litigation in defense of the patent were paid on July 1 , 2015 . Sisco estimates that the useful life of the patent will be 20 years from the date of acquisition .
Prepare a computation of the carrying value of the patent at December 31 , 2015 .
6 ) On August 31 , Latty Co . partially refunded $ 443,000 of its outstanding 10 % note payable made one year ago to Dugan State Bank by paying $ 443,000 plus $ 44,300 interest , having obtained the $ 487,300 by using $ 134,220 cash and signing a new one-year $ 388,000 note discounted at 9 % by the bank .