Sh17 Oriole Industries has the following patents on its December 31, 2024, balance sheet.Patent ItemPatent APatent BPatent CInitial Cost2.$44,472$17,160$23,0403.Date Acquired3/1/217/1/229/1/23Useful Life at Date Acquired17 years10 yearsThe following events occurred during the year ended December 31, 2025.4 years1. Research and development costs of $248,000 were incurred during the year.Patent D was purchased on July 1 for $26,106. This patent has a useful life of 9¹/2 years.As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value mayhave occurred at December 31, 2025. The controller for Oriole estimates the expected future cash flows from Patent B willbe as follows. Year202620272028Expected FutureCash Flows$1,8001,8001,800he proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)compute the total carrying amount of Oriole's patents on its December 31, 2025, balance sheet. (Round present value factorcalculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971.)Total carrying amount $38703

Patents refers to the rights that one have on their own unique invention and which ristrict others…

compute the total carrying amount of Oriole's patents on its December 31, 2025, balance sheet. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971.) Total carrying amount $ 38703

compute the total carrying amount of Oriole's patents on its December 31, 2025, balance sheet. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971.) Total carrying amount $ 38703

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 3P

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