a) Compute the total carrying amount of Metlock's patents on its december 31, 2024 balance sheet. b) Compute the total carrying amount of Metlock's patents on its December 31, 2025 balance sheetNote:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. Current Attempt in ProgressMetlock Industries has the following patents on its December 31, 2024, balance sheet:Useful Life at Date Acquired20 years10 years8 yearsPatent ItemPatent APatent BPatent C1.The following events occurred during the year ended December 31, 2025.2.3.Year20262027Initial Cost Date Acquired$51,600$20,400$19,20020283/1/217/1/229/1/23Research and development costs of $351,000 were incurred during the year.Patent D was purchased on July 1 for $10,080. 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, 2025. The controller for Metlock estimates the future cash flows from Patent B will be asfollows:Future Cash Flows$2,700$2,700$2,700The 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

The carrying amount of a patent is essentially the value at which a company reports the patent on…

Answered: Metlock Industries has the following…

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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a) Compute the total carrying amount of Metlock's patents on its december 31, 2024 balance sheet.

b) Compute the total carrying amount of Metlock's patents on its December 31, 2025 balance sheet

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

Current Attempt in Progress
Metlock Industries has the following patents on its December 31, 2024, balance sheet:
Useful Life at Date Acquired
20 years
10 years
8 years
Patent Item
Patent A
Patent B
Patent C
1.
The following events occurred during the year ended December 31, 2025.
2.
3.
Year
2026
2027
Initial Cost Date Acquired
$51,600
$20,400
$19,200
2028
3/1/21
7/1/22
9/1/23
Research and development costs of $351,000 were incurred during the year.
Patent D was purchased on July 1 for $10,080. 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, 2025. The controller for Metlock estimates the future cash flows from Patent B will be as
follows:
Future Cash Flows
$2,700
$2,700
$2,700
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

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