Final answer:
The patent net of accumulated amortization on the balance sheet as of December 31, 2022, is the original cost of the patent minus the accumulated amortization and any impairment losses.
Step-by-step explanation:
The correct answer is option "the amount that should be reported in the balance sheet for the patent net of accumulated amortization as of December 31, 2022, depends on the original cost of the patent, the accumulated amortization up to that date, and any impairment losses recognized.
To calculate this figure, you need to start with the original cost of the patent and subtract out the accumulated amortization. If impairment has occurred and has been recorded, this would also decrease the carrying value of the patent.
Hence, the book value of the patent reported on the balance sheet will be the original cost minus accumulated amortization and any impairment losses.
For example, if a company purchased a patent for $100,000 and had accumulated amortization of $20,000 with no impairment losses, the patent would be reported on the balance sheet at a net of $80,000.
The correct answer is option: the net book value of the patent.
The amount that should be reported in the balance sheet for the patent net of accumulated amortization at December 31, 2022, is the net book value of the patent.
Net book value refers to the value of an asset after deducting accumulated depreciation or amortization. In this case, the accumulated amortization should be subtracted from the original cost of the patent to determine the net book value.
For example, if the patent had an original cost of $100,000 and accumulated amortization of $20,000 by December 31, 2022, the net book value would be $80,000 ($100,000 - $20,000).