In 1970, Ramirez Company Had Acquired Copyrights for $750, 000

In 1970, Ramirez Company had acquired copyrights for $750, 000 on several literary works from some obscure 18th century authors.These copyrights were fully amortized by 2010.In early 2010, a new anthropological discovery made these copyrights worth $2, 500, 000.As a result, Ramirez should report which of the following in its financial statements for 2010?

A) $2, 500, 000 as a holding gain
B) $ 750, 000 as copyrights-based recovery of value limited to historical cost
C) $2, 500, 000 as an extraordinary item
D) Footnote disclosure if the amount is material

Correct Answer:

Verified

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