Sheridan Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A Patent B Patent C 1 2 Initial Cost 3. $41,820 $15,600 $16,800 Date Acquired 3/1/21 The following events occurred during the year ended December 31, 2025. Research and development costs of $235,000 were incurred during the year. Patent D was purchased on July 1 for $45,372. This patent has a useful life of 91/2 year As a result of reduced demands for certain products protected by Patent B 7/1/22 9/1/23 Useful Life at Date Acquired 17 years 10 years 4 years
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- Windsor Industries has the following patents on its December 31, 2024, balance sheet. Useful Life at Date Acquired Patent Item Patent A Patent B Patent C 3. The following events occurred during the year ended December 31, 2025. Year 1. Research and development costs of $236,000 were incurred during the year. 2 Patent D was purchased on July 1 for $47,310. This patent has a useful life of 9¹/2 years. 2026 2027 Initial Cost Date Acquired $42,029 $15.720 $17,280 2028 (a) Expected Future Cash Flows As a result of reduced demands for certain products protected by Patent B, a possible Impairment of Patent B's value may have occurred at December 31, 2025. The controller for Windsor estimates the expected future cash flows from Patent B will be as follows. $2,100 2,100 2,100 3/1/21 7/1/22 9/1/23 17 years 10 years 4 years The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Click here to view factor tables. Your answer is…Tones Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $30,600 3/1/16 17 years Patent B $15,000 7/1/17 10 years Patent C $14,400 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $245,700 were incurred during the year. 2. Patent D was purchased on July 1 for $36,480. This patent has a useful life of 9½ years. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2020. The controller for Tones estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,000 2022 2,000 2023 2,000 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)…Skysong Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Date Acquired Useful Life at Date Acquired Initial Cost Patent A $42,024 3/1/16 17 years Patent B $15,720 7/1/17 10 years Patent C $17,280 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $236,000 were incurred during the year. 2. Patent Dwas purchased on July 1 for $47,310. This patent has a useful life of 9'/2years. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value i have occurred at December 31, 2020. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,100 2022 2,100 2023 2,100 (b) Compute the total carrying amount of Skysong' patents on its December 31, 2020, balance sheet. Total carrying amount %24
- Sage Hill Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $43,860 3/1/16 17 years Patent B $16,800 7/1/17 10 years Patent C $21,600 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $245,000 were incurred during the year. 2. Patent D was purchased on July 1 for $40,470. This patent has a useful life of 91/2 years. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B’s value may have occurred at December 31, 2020. The controller for Sage Hill estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,100 2022 2,100 2023 2,100 The proper discount rate to be used for these flows is 8%. (Assume…Skysong Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $44,268 3/1/16 17 years Patent B $17,040 7/1/17 10 years Patent C $22,560 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $247,000 were incurred during the year. 2. Patent D was purchased on July 1 for $37,848. This patent has a useful life of 91/2 years. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B’s value may have occurred at December 31, 2020. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,200 2022 2,200 2023 2,200 The proper discount rate to be used for these flows is 8%. (Assume that the…b) ABC industry has the following patents on its December 31, 2017, Balance sheet: Patent Item Initial Cost(BDT) Date Acquired 1/3/14 of Useful life 17 years 10 years 4 years Patent A 30,000 Patent B Patent C 15,000 14,400 1/7/15 1/9/16 The following events occurred during the year ended December 31, 2018: 1) Research and Development costs of Tk. 2,45,700 were incurred during the year. 2) Patent D was purchased on July 1, for Tk. 36,480. This patent has a useful life of 9.5 years. 3) As a result of reduced demands of certain products protected by patent B, a possible impairment of patent B,s value may have occurred at December 31,2018. The controller of ABC Industry estimates the expected future cash flows from patent B will be as follows: | Year 2019 2020 | 2021 Expected Future cash flows(BDT) 2,000 2,000 2,000 The proper discount rate to be used for these cash flows is 8% (Assume the cash flows occur at the end of the year) Requirements: Compute the total carrying amount of…
- Sage Hill Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $41,616 3/1/16 17 years Patent B $15,480 7/1/17 10 years Patent C $16,320 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $234,000 were incurred during the year. 2. Patent D was purchased on July 1 for $47,196. This patent has a useful life of 91/2 years. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B’s value may have occurred at December 31, 2020. The controller for Sage Hill estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,000 2022 2,000 2023 2,000 The proper discount rate to be used for these flows is 8%. (Assume…b) ABC industry has the following patents on its December 31, 2017, Balance sheet: Patent Item Initial Cost(BDT)Date Acquired 1/3/14 of Useful life 17 years 10 years 4 years Patent A Patent B Patent C 30,000 15,000 14,400 1/7/15 1/9/16 The following events occurred during the year ended December 31, 2018: 1) Research and Development costs of Tk. 2,45,700 were incurred during the year. 2) Patent D was purchased on July 1, for Tk. 36,480. This patent has a useful life of 9.5 years. 3) As a result of reduced demands of certain products protected by patent B, a possible impairment of patent B,s value may have occurred at December 31,2018. The controller of ABC Industry estimates the expected future cash flows from patent B will be as follows: Year 2019 2020 2021 Expected Future cash flows(BDT) | 2,000 2,000 2,000 The proper discount rate to be used for these cash flows is 8% (Assume the cash flows occur at the end of the year) Requirements: Compute the total carrying amount of ABC'spatents…Windsor Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent C 2. 3. Year — Initial Cost Date Acquired $52,800 $21,600 $16,800 The following events occurred during the year ended December 31, 2020. 2021 1. Research and development costs of $327,900 were incurred during the year. Patent D was purchased on July 1 for $10,800. This patent has a useful life of 12 years. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2020. The controller for Windsor estimates the future cash flows from Patent B will be as follows. 2022 3/1/16 Future Cash Flows 7/1/17 $2,500 $2,500 9/1/18 Useful Life at Date Acquired 20 years 10 years 8 years
- Roocky reports the following patents on its December 31, 2017 Statement of Financial Position Useful life at Initial Cost Acquisition Date acquisition date A 1,224,000.00 March 1, 2014 17 B 450,000.00 July 1, 2015 10 432,000.00 September 1, 2016 4 The following events occurred during the yearended December 31, 2018. |1. Research and development costs of 737,100 were incurred during the year. These costs |were incurred prior to projects achieving economic viability. |2. Patent D was purchased on July 1 for 855,000. It has a remaining life of 9.5 years. 3. A possible impairment of Patent B's value may have occurred at December 31, 2018. This is December 31, 2019 60,000.00 December 31, 2020 60,000.00 December 31, 2021 60,000.00 |The appropriate discount rate to be used for these cash flows is 8% Questions: 1. What is the carrying value of Roocky's patents on December 31, 2017? 2. What amount of impairment loss should be reported by Roocky for the year ended December 31, 2018? 3. What is…(17). Tahir Industries has the following patents on its December 31, 2021, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $ 48,000 3/1/18 20 years $ 19,200 $ 16,800 Patent B 7/1/19 10 years Patent C 9/1/20 8 years The following events occurred during the year ended December 31, 2022. (1). Research and development costs of $347,000 were incurred during the year. (2). Patent D was purchased on July 1 for $10,800. This patent has a useful life of 12 years. (3). As a result of reduced demands fo certain products protected by Patent B, a possible im airment of Patent B's value may have occurred at Decem ber 31, 2022. The controller for Tahir estimates the future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2023 $2,500 2024 2,500 2025 2,500 The prop discount rate to be used for these cash flows is 8%. (Assume that the cash flows occur at the end of the year.) (Annuity Factor @ 8% for 3 yrs = $2.57710) Instructions…Sami company acquired a patent on October 1, 2020. Sami paid cash of $55,000 to the seller. registration fees of $5,000 were paid related to the acquisition. On the same date, Sami paid $5,000 advertising expense. The patent has a useful life of 10 years. What is the amount of patent to be reported at the statement of financial position on 31/12/2021? a- 55000 b- 60000 c- 50000 d- 52500