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. 2028 Initial Cost $41,820 $15,600 $16,800 (a) Expected Future Cash Flows (b) $2,050 2,050 2,050 Click here to view factor tables. Research and development costs of $235,000 were incurred during the year. Patent D was purchased on July 1 for $45,372. 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 Sheridan estimates the expected future cash flows from Patent B will be as follows. Your answer is correct. Date Acquired The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Total carrying amount $ 3/1/21 7/1/22 eTextbook and Media 9/1/23 Useful Life at Date Acquired 17 years 10 years 4 years Compute the total carrying amount of Sheridan's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places,e.g. 5,125.) Total carrying amount $ 55,290 Attempts: 1 of 3 used Compute the total carrying amount of Sheridan'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 0 decimal places e.g. 58,971.)
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. 2028 Initial Cost $41,820 $15,600 $16,800 (a) Expected Future Cash Flows (b) $2,050 2,050 2,050 Click here to view factor tables. Research and development costs of $235,000 were incurred during the year. Patent D was purchased on July 1 for $45,372. 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 Sheridan estimates the expected future cash flows from Patent B will be as follows. Your answer is correct. Date Acquired The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Total carrying amount $ 3/1/21 7/1/22 eTextbook and Media 9/1/23 Useful Life at Date Acquired 17 years 10 years 4 years Compute the total carrying amount of Sheridan's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places,e.g. 5,125.) Total carrying amount $ 55,290 Attempts: 1 of 3 used Compute the total carrying amount of Sheridan'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 0 decimal places e.g. 58,971.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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.
2028
Initial Cost
$41,820
$15,600
$16,800
(a)
(b)
Expected Future
Cash Flows
$2,050
2,050
Research and development costs of $235,000 were incurred during the year.
Patent D was purchased on July 1 for $45,372. This patent has a useful life of 9¹/2 years.
2,050
Click here to view factor tables.
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 Sheridan estimates the expected future cash flows from Patent B
will be as follows.
Date Acquired
Your answer is correct.
3/1/21
The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)
Total carrying amount $
7/1/22
9/1/23
eTextbook and Medial
Useful Life at Date Acquired
17 years
10 years
4 years
Compute the total carrying amount of Sheridan's patents on its December 31, 2024, balance sheet. (Round answer to O decimal
places,e.g. 5,125.)
Total carrying amount $
55,290
Attempts: 1 of 3 used
Compute the total carrying amount of Sheridan'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.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education