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Sheridan Industries has the following patents on its December 31, 2024, balance sheet. Useful Life at Date Acquired 17 years 10 years 4 years Patent Item Patent A Patent B Patent C 1. The following events occurred during the year ended December 31, 2025. 2 Initial Cost Date Acquired $41,820 3/1/21 $15,600 7/1/22 $16,800 3. 9/1/23 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 9¹12 years. 2 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

Sheridan Industries has the following patents on its December 31, 2024, balance sheet. Useful Life at Date Acquired 17 years 10 years 4 years Patent Item Patent A Patent B Patent C 1. The following events occurred during the year ended December 31, 2025. 2 Initial Cost Date Acquired $41,820 3/1/21 $15,600 7/1/22 $16,800 3. 9/1/23 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 9¹12 years. 2 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

FINANCIAL ACCOUNTING
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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Year 2026 2027 2028 Expected Future Cash Flows (a) $2,050 2,050 2,050 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 is incorrect. 4 Compute the total carrying amount of Sheridan's patents on its December 31, 2024, balance sheet. (Round answer to 0 decimal places.e.g. 5,125.) Total carrying amount $
Transcribed Image Text:Year 2026 2027 2028 Expected Future Cash Flows (a) $2,050 2,050 2,050 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 is incorrect. 4 Compute the total carrying amount of Sheridan's patents on its December 31, 2024, balance sheet. (Round answer to 0 decimal places.e.g. 5,125.) Total carrying amount $
Sheridan Industries has the following patents on its December 31, 2024, balance sheet. Useful Life at Date Acquired 17 years 10 years 4 years Patent Item Patent A Patent B Patent C The following events occurred during the year ended December 31, 2025. 1. 2 Initial Cost Date Acquired $41,820 3/1/21 $15,600 7/1/22 $16,800 9/1/23 3. 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 9¹12 years. दा 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
Transcribed Image Text:Sheridan Industries has the following patents on its December 31, 2024, balance sheet. Useful Life at Date Acquired 17 years 10 years 4 years Patent Item Patent A Patent B Patent C The following events occurred during the year ended December 31, 2025. 1. 2 Initial Cost Date Acquired $41,820 3/1/21 $15,600 7/1/22 $16,800 9/1/23 3. 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 9¹12 years. दा 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
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