Gray Co. was granted a patent on January 2, Year 5, and appropriately capitalized $45,000
of related costs. Gray was amortizing the patent over its estimated useful life of 15 years.
During Year 8, Gray paid $15,000 in legal costs in successfully defending an attempted
infringement of the patent. After the legal action was completed, Gray sold the patent to the
plaintiff for $75,000. Gray’s policy is to take no amortization in the year of disposal. In its
Year 8 income statement, what amount should Gray report as gain from sale of patent?