Skysong Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $44,268 3/1/16 17 years Patent B $17,040 7/1/17 10 years Patent C $22,560 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $247,000 were incurred during the year. 2. Patent D was purchased on July 1 for $37,848. This patent has a useful life of 91/2 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, 2020. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,200 2022 2,200 2023 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 New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Compute the total carrying amount of Skysong’ patents on its December 31, 2019, balance sheet. Total carrying amount $enter the Total carrying amount in dollars Compute the total carrying amount of Skysong' patents on its December 31, 2020, balance sheet. Total carrying amount
Skysong Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $44,268 3/1/16 17 years Patent B $17,040 7/1/17 10 years Patent C $22,560 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $247,000 were incurred during the year. 2. Patent D was purchased on July 1 for $37,848. This patent has a useful life of 91/2 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, 2020. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,200 2022 2,200 2023 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 New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Compute the total carrying amount of Skysong’ patents on its December 31, 2019, balance sheet. Total carrying amount $enter the Total carrying amount in dollars Compute the total carrying amount of Skysong' patents on its December 31, 2020, balance sheet. Total carrying amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Skysong Industries has the following patents on its December 31, 2019, balance sheet .
The following events occurred during the year ended December 31, 2020.
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
|
Patent Item
|
Initial Cost
|
Date Acquired
|
Useful Life at Date Acquired
|
|||
|---|---|---|---|---|---|---|
|
Patent A
|
$44,268 | 3/1/16 | 17 years | |||
|
Patent B
|
$17,040 | 7/1/17 | 10 years | |||
|
Patent C
|
$22,560 | 9/1/18 | 4 years |
The following events occurred during the year ended December 31, 2020.
| 1. | Research and development costs of $247,000 were incurred during the year. | |
| 2. | Patent D was purchased on July 1 for $37,848. This patent has a useful life of 91/2 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, 2020. The controller for Skysong estimates the expected future |
|
Year
|
Expected Future Cash Flows
|
|
|---|---|---|
|
2021
|
$2,200 | |
|
2022
|
2,200 | |
|
2023
|
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
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.
Compute the total carrying amount of Skysong’ patents on its December 31, 2019, balance sheet.
| Total carrying amount |
$enter the Total carrying amount in dollars
|
Compute the total carrying amount of Skysong' patents on its December 31, 2020, balance sheet.
| Total carrying amount |
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