Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes that it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells one of its patents. The history of Fields patent number 758-6002-1A is as follows. Date Activity Cost 2011 − 2012 Research conducted to develop precipitator $384,000 Jan. 3, 2013 Design and construction of a prototype (capitalization criteria not yet met) 90,900 Mar. 15, 2013 Testing of models 42,200 Jan. 4, 2014 Fees paid to engineers and lawyers to prepare patent application; patent granted January 4, 2014 51,900 Nov. 30, 2015 Engineering activity necessary to advance the design of the precipitator to the manufacturing stage 83,000 Dec. 31, 2016 Legal fees paid to successfully defend precipitator patent 51,250 Apr. 15, 2017 Research aimed at modifying the design of the patented precipitator 52,250 July 31, 2021 Legal fees paid in unsuccessful patent infringement suit against a competitor 32,500 Fields assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2019, it revised its useful life estimate downward to five remaining years. The company’s year ends December 31. Fields follows IFRS for reporting purposes. Calculate the carrying value of patent No. 758-6002-1A on December 31, 2014. Carrying value of patent $Enter your answer in accordance to the question statement
Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes that it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells one of its patents. The history of Fields patent number 758-6002-1A is as follows. Date Activity Cost 2011 − 2012 Research conducted to develop precipitator $384,000 Jan. 3, 2013 Design and construction of a prototype (capitalization criteria not yet met) 90,900 Mar. 15, 2013 Testing of models 42,200 Jan. 4, 2014 Fees paid to engineers and lawyers to prepare patent application; patent granted January 4, 2014 51,900 Nov. 30, 2015 Engineering activity necessary to advance the design of the precipitator to the manufacturing stage 83,000 Dec. 31, 2016 Legal fees paid to successfully defend precipitator patent 51,250 Apr. 15, 2017 Research aimed at modifying the design of the patented precipitator 52,250 July 31, 2021 Legal fees paid in unsuccessful patent infringement suit against a competitor 32,500 Fields assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2019, it revised its useful life estimate downward to five remaining years. The company’s year ends December 31. Fields follows IFRS for reporting purposes. Calculate the carrying value of patent No. 758-6002-1A on December 31, 2014. Carrying value of patent $Enter your answer in accordance to the question statement
Business Its Legal Ethical & Global Environment
10th Edition
ISBN:9781305224414
Author:JENNINGS
Publisher:JENNINGS
Chapter11: Environmental Regulation And Sustainability
Section: Chapter Questions
Problem 3QAP
Related questions
Question
Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes that it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells one of its patents. The history of Fields patent number 758-6002-1A is as follows.
Fields assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2019, it revised its useful life estimate downward to five remaining years. The company’s year ends December 31. Fields follows IFRS for reporting purposes.
Date | Activity | Cost | ||
2011 − 2012 | Research conducted to develop precipitator | $384,000 | ||
Jan. 3, 2013 | Design and construction of a prototype (capitalization criteria not yet met) | 90,900 | ||
Mar. 15, 2013 | Testing of models | 42,200 | ||
Jan. 4, 2014 | Fees paid to engineers and lawyers to prepare patent application; patent granted January 4, 2014 | 51,900 | ||
Nov. 30, 2015 | Engineering activity necessary to advance the design of the precipitator to the manufacturing stage | 83,000 | ||
Dec. 31, 2016 | Legal fees paid to successfully defend precipitator patent | 51,250 | ||
Apr. 15, 2017 | Research aimed at modifying the design of the patented precipitator | 52,250 | ||
July 31, 2021 | Legal fees paid in unsuccessful patent infringement suit against a competitor | 32,500 |
Fields assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2019, it revised its useful life estimate downward to five remaining years. The company’s year ends December 31. Fields follows IFRS for reporting purposes.
Calculate the carrying value of patent No. 758-6002-1A on December 31, 2014.
Carrying value of patent | $Enter your answer in accordance to the question statement |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Business Its Legal Ethical & Global Environment
Accounting
ISBN:
9781305224414
Author:
JENNINGS
Publisher:
Cengage
Business Its Legal Ethical & Global Environment
Accounting
ISBN:
9781305224414
Author:
JENNINGS
Publisher:
Cengage