Your answer is correct.Compute the total carrying amount of Windsor's patents on its December 31, 2019, balance sheet.(b)Total carrying amount $72880Compute the total carrying amount of Windsor's patents on its December 31, 2020, balance sheet. (Round present value factorcalculations to 5 decimal places, e.g. 15.24673 and final answer to O decimal places, e.g. 5,125.)Total carrying amount $ Windsor Industries has the following patents on its December 31, 2019, balance sheet.Patent ItemPatent APatent BPatent C2.3.Year—Initial Cost Date Acquired$52,800$21,600$16,800The following events occurred during the year ended December 31, 2020.20211. 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 mayhave occurred at December 31, 2020. The controller for Windsor estimates the future cash flows from Patent B will be asfollows.20223/1/16Future Cash Flows7/1/17$2,500$2,5009/1/18Useful Life at Date Acquired20 years10 years8 years

Current problem is related to the concept of impairment of asset value. Every entity on each balance…

(b) Compute the total carrying amount of Windsor's patents on its December 31, 2020, balance sheet. (Round present value factor calculations to 5 decimal places, e.g. 15.24673 and final answer to O decimal places, e.g. 5,125.) Total carrying amount $ LA

(b) Compute the total carrying amount of Windsor's patents on its December 31, 2020, balance sheet. (Round present value factor calculations to 5 decimal places, e.g. 15.24673 and final answer to O decimal places, e.g. 5,125.) Total carrying amount $ LA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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