Homework Help is Here – Start Your Trial Now!
Business
Accounting
Cheyenne Industries has the following patents on its December 31, 2024, balance sheet. Date Acquired Useful Life at Date Acquired 3/1/21 17 years 7/1/22 10 years 9/1/23 4 years Patent Item Patent A Patent B Patent C 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. 2. 3. Year 2026 Initial Cost $44,268 $17,040 $22,560 2027 2028 (a) Expected Future Cash Flows $2,200 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.) Click here to view factor tables. Your Answer Correct Answer (Used) Compute the total carrying amount of Cheyenne's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places,e.g. 5,125.) Total carrying amount $ 62,106

Cheyenne Industries has the following patents on its December 31, 2024, balance sheet. Date Acquired Useful Life at Date Acquired 3/1/21 17 years 7/1/22 10 years 9/1/23 4 years Patent Item Patent A Patent B Patent C 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. 2. 3. Year 2026 Initial Cost $44,268 $17,040 $22,560 2027 2028 (a) Expected Future Cash Flows $2,200 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.) Click here to view factor tables. Your Answer Correct Answer (Used) Compute the total carrying amount of Cheyenne's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places,e.g. 5,125.) Total carrying amount $ 62,106

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please help me. 

Thankyou. 

(a) Your Answer Correct Answer (Used) Compute the total carrying amount of Cheyenne's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places,e.g. 5,125.) Total carrying amount (b) $ * Your answer is incorrect. Compute the total carrying amount of Cheyenne'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 O decimal places e.g. 58,971.) Total carrying amount $ eTextbook and Media 62,106 98732
Transcribed Image Text:(a) Your Answer Correct Answer (Used) Compute the total carrying amount of Cheyenne's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places,e.g. 5,125.) Total carrying amount (b) $ * Your answer is incorrect. Compute the total carrying amount of Cheyenne'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 O decimal places e.g. 58,971.) Total carrying amount $ eTextbook and Media 62,106 98732
Cheyenne Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A Patent B Patent C 1. 2. 3. Year 2026 2027 The following events occurred during the year ended December 31, 2025. 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. 2028 Initial Cost $44,268 $17,040 $22,560 (a) Expected Future Cash Flows $2,200 2,200 2,200 Click here to view factor tables. Date Acquired 3/1/21 7/1/22 Total carrying amount $ 9/1/23 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Useful Life at Date Acquired 17 years 10 years 4 years Your Answer Correct Answer (Used) Compute the total carrying amount of Cheyenne's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places,e.g. 5,125.) 62,106
Transcribed Image Text:Cheyenne Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A Patent B Patent C 1. 2. 3. Year 2026 2027 The following events occurred during the year ended December 31, 2025. 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. 2028 Initial Cost $44,268 $17,040 $22,560 (a) Expected Future Cash Flows $2,200 2,200 2,200 Click here to view factor tables. Date Acquired 3/1/21 7/1/22 Total carrying amount $ 9/1/23 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Useful Life at Date Acquired 17 years 10 years 4 years Your Answer Correct Answer (Used) Compute the total carrying amount of Cheyenne's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places,e.g. 5,125.) 62,106
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Intangible assets
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS