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Tamarisk Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent C 2. 3. The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $341,400 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, 2020. The controller for Tamarisk estimates the future cash flows from Patent B will be as follows. Year 2021 2022 2023 Initial Cost Date Acquired $51,600 $21,600 $16,800 (a) Future Cash Flows $2,800 $2,800 $2,800 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) 3/1/16 7/1/17 9/1/18 Your answer is incorrect. Total carrying amount $ Useful Life at Date Acquired 20 years 10 years 8 years Compute the total carrying amount of Tamarisk's patents on its December 31, 2019, balance sheet. eTextbook and Media Save for Later Attempts: 1 of 7 used Submit An

Tamarisk Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent C 2. 3. The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $341,400 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, 2020. The controller for Tamarisk estimates the future cash flows from Patent B will be as follows. Year 2021 2022 2023 Initial Cost Date Acquired $51,600 $21,600 $16,800 (a) Future Cash Flows $2,800 $2,800 $2,800 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) 3/1/16 7/1/17 9/1/18 Your answer is incorrect. Total carrying amount $ Useful Life at Date Acquired 20 years 10 years 8 years Compute the total carrying amount of Tamarisk's patents on its December 31, 2019, balance sheet. eTextbook and Media Save for Later Attempts: 1 of 7 used Submit An

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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i need the total carrying amount for 2019 and 2021...

Tamarisk Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent C 1. 2. 3. Year 2021 2022 2023 Initial Cost The following events occurred during the year ended December 31, 2020. (a) $51,600 $21,600 $16,800 Future Cash Flows $2,800 $2,800 $2,800 Date Acquired 3/1/16 7/1/17 9/1/18 Research and development costs of $341,400 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, 2020. The controller for Tamarisk estimates the future cash flows from Patent B will be as follows. The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year) Your answer is incorrect. Total carrying amount $ eTextbook and Media Save for Later Useful Life at Date Acquired 20 years 10 years 8 years Compute the total carrying amount of Tamarisk's patents on its December 31, 2019, balance sheet. Attempts: 1 of 7 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Ans
Transcribed Image Text:Tamarisk Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent C 1. 2. 3. Year 2021 2022 2023 Initial Cost The following events occurred during the year ended December 31, 2020. (a) $51,600 $21,600 $16,800 Future Cash Flows $2,800 $2,800 $2,800 Date Acquired 3/1/16 7/1/17 9/1/18 Research and development costs of $341,400 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, 2020. The controller for Tamarisk estimates the future cash flows from Patent B will be as follows. The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year) Your answer is incorrect. Total carrying amount $ eTextbook and Media Save for Later Useful Life at Date Acquired 20 years 10 years 8 years Compute the total carrying amount of Tamarisk's patents on its December 31, 2019, balance sheet. Attempts: 1 of 7 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Ans
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