Oriale Industries has the following patents on its December 31, 2024, balance sheet Initial Cost Date Acquired $44,472 3/1/21 $17,160 7/1/22 $23,040 9/1/23 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 $248.000 were incurred during the year. 2 Patent was purchased on July 1 for $26,106. This patent has a useful life of 9 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, 2025. The controller for Oriole estimates the expected future cash flows from Paitent B will be as follows Year 2026 2027 2028 Expected Future Cash Flows Useful Life at Date Acquired 17 years 10 years $1,800 1.800 1,800 (b) The proper discount rate to be used for these flows is 8%. (Aasume that the cash flowes occur at the end of the year) Click here to view factor tables. Compute the total carrying amount of Oriole's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places... 5.125) Total carrying amount $ Compute the total carrying amount of Oriole's patents on its December 31, 2025, balance sheet. (Round present value factor calculations to 5 decimal places, eg 1.25126 and final omwer to 0 decimal places eg. 58,971.) Total carrying amount $
Oriale Industries has the following patents on its December 31, 2024, balance sheet Initial Cost Date Acquired $44,472 3/1/21 $17,160 7/1/22 $23,040 9/1/23 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 $248.000 were incurred during the year. 2 Patent was purchased on July 1 for $26,106. This patent has a useful life of 9 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, 2025. The controller for Oriole estimates the expected future cash flows from Paitent B will be as follows Year 2026 2027 2028 Expected Future Cash Flows Useful Life at Date Acquired 17 years 10 years $1,800 1.800 1,800 (b) The proper discount rate to be used for these flows is 8%. (Aasume that the cash flowes occur at the end of the year) Click here to view factor tables. Compute the total carrying amount of Oriole's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places... 5.125) Total carrying amount $ Compute the total carrying amount of Oriole's patents on its December 31, 2025, balance sheet. (Round present value factor calculations to 5 decimal places, eg 1.25126 and final omwer to 0 decimal places eg. 58,971.) Total carrying amount $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Oriale Industries has the following patents on its December 31, 2024, balance sheet
Patent Item
Patent A
Patent B
Patent C
Year
2026
The following events occurred during the year ended December 31, 2025
2027
2028
Initial Cost Date Acquired Useful Life at Date Acquired
3/1/21
17 years
7/1/22
10 years
1 Research and development costs of $248.000 were incurred during the year.
2
Patent D was purchased on July 1 for $26.106. This patent has a useful life of 9
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, 2025. The controller for Oriole estimates the expected future cash flows from Patent B will be as follows
$44,472
$17,160
$20.040
(a)
Expected Future
Cash Flows
(b)
$1,800
1.800
1.800
Click here to view factor tables
The proper discount rate to be used for these flows is 8%. (Aasume that the cash flows occur at the end of the year)
9/1/23
4 years
Compute the total carrying amount of Oriole's patents on its December 31, 2024 balance sheet. (Round answer to 0 decimal places aty.5.125)
Total carrying amount $
Total carrying amount $
Compute the total carrying amount of Oriole's patents on its December 31, 2025, balance sheet. (Round present value factor calculations to 5 decimal places, es 1.25124 and final arwer to 0 decimal places g. 58,971.)
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