6 Current Attempt in Progress Cheyenne Industries has the following patents on its December 31, 2024, balance sheet Patent Item 1 Patent A Patent B Patent C Initial Cost 2 $44,268 $17,040 $22,560 Year 2026 2027 The following events occurred during the year ended December 31, 2025 1 Research and development costs of $247,000 were incurred during the year Patent D was purchased on July 1 for $37,848. 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 may have occurred at December 31, 2025. The controller for Cheyenne estimates the expected future cash flows from Patent B will be as follows Date Acquired 3/1/21 7/1/22 9/1/23 Expected Future Cash Flows Useful Life at Date Acquired 17 years 10 years 4 years $2,200 2/200
6 Current Attempt in Progress Cheyenne Industries has the following patents on its December 31, 2024, balance sheet Patent Item 1 Patent A Patent B Patent C Initial Cost 2 $44,268 $17,040 $22,560 Year 2026 2027 The following events occurred during the year ended December 31, 2025 1 Research and development costs of $247,000 were incurred during the year Patent D was purchased on July 1 for $37,848. 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 may have occurred at December 31, 2025. The controller for Cheyenne estimates the expected future cash flows from Patent B will be as follows Date Acquired 3/1/21 7/1/22 9/1/23 Expected Future Cash Flows Useful Life at Date Acquired 17 years 10 years 4 years $2,200 2/200
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 13E
Related questions
Question
![B
KANE
Current Attempt in Progress
Cheyenne Industries has the following patents on its December 31, 2024, balance sheet.
Patent Item i Initial Cost
Patent A
Patent B
Patent C
22
$44,268
$17,040
$22.560
Year
2026
2027
Date Acquired
The following events occurred during the year ended December 31, 2025.
Expected Future
Cash Flows
3/1/21
7/1/22
9/1/23
1 Research and development costs of $247,000 were incurred during the year
Patent D was purchased on July 1 for $37,848. This patent has a useful life of 9 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, 2025. The controller for Cheyenne estimates the expected future cash flows from Patent B
will be as follows
$2,200
2/200
Useful Life at Date Acquired
17 years
10 years
4 years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbee6972a-c5dc-43c7-a241-2f79f6bd5a8e%2F82bcd330-7ce5-461d-9cd5-bf8f66d349db%2Fyfpsnl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:B
KANE
Current Attempt in Progress
Cheyenne Industries has the following patents on its December 31, 2024, balance sheet.
Patent Item i Initial Cost
Patent A
Patent B
Patent C
22
$44,268
$17,040
$22.560
Year
2026
2027
Date Acquired
The following events occurred during the year ended December 31, 2025.
Expected Future
Cash Flows
3/1/21
7/1/22
9/1/23
1 Research and development costs of $247,000 were incurred during the year
Patent D was purchased on July 1 for $37,848. This patent has a useful life of 9 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, 2025. The controller for Cheyenne estimates the expected future cash flows from Patent B
will be as follows
$2,200
2/200
Useful Life at Date Acquired
17 years
10 years
4 years
![Year
2026
2027
2028
nave occurred at December 31, 2025 The controner for Cheyenne estimates the expected ruture cashnows from Patent b
will be as follows.
Expected Future
Cash Flows
(a)
$2,200
2,200
The proper discount rate to be used for these flows is 8% (Assume that the cash flows occur at the end of the year)
2,200
Click here to view factor tables
Compute the total carrying amount of Cheyenne's patents on its December 31, 2024, balance sheet. (Round answer to 0 decimal
places ng 5.125)
Save for Later
Total carrying amount $
Attempts: unlimited Submit Answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbee6972a-c5dc-43c7-a241-2f79f6bd5a8e%2F82bcd330-7ce5-461d-9cd5-bf8f66d349db%2F2jo0vfs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Year
2026
2027
2028
nave occurred at December 31, 2025 The controner for Cheyenne estimates the expected ruture cashnows from Patent b
will be as follows.
Expected Future
Cash Flows
(a)
$2,200
2,200
The proper discount rate to be used for these flows is 8% (Assume that the cash flows occur at the end of the year)
2,200
Click here to view factor tables
Compute the total carrying amount of Cheyenne's patents on its December 31, 2024, balance sheet. (Round answer to 0 decimal
places ng 5.125)
Save for Later
Total carrying amount $
Attempts: unlimited Submit Answer
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