The carrying value of patent No. 758-6002-1A on December 31, 2004? ________ The carrying value of patent No. 758-6002-1A on December 31, 2008? ________ The carrying value of patent No. 758-6002-1A on December 31, 2011? ________
Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history of Fields patent number 758-6002-1A is as follows.
|
Date: |
Activity: |
Cost: |
|
|
2001-2002 |
Research conducted to develop precipitator |
P384,000 |
|
|
Jan 2003 |
Design and construction of a prototype |
87,600 |
|
|
Mar 2003 |
Testing of models |
42,000 |
|
|
Jan 2004 |
Fees paid engineers and lawyers to prepare patent |
59,500 |
|
|
Nov 2005 |
Engineering activity necessary to advance the design |
81,500 |
|
|
Dec 2006 |
Legal fees paid to successfully defend precipitator |
42,000 |
|
|
May 2007 |
Research aimed at modifying the design of the |
49,000 |
|
|
Jul 20011 |
Legal fees paid in unsuccessful patent infringement |
34,000 |
|
Based on execution of a royalty contract in March 2007, the patent is deemed to be economically viable. Fields assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2009, it revised its useful life estimate downward to 5 remaining years. Amortization is computed for a full year if the cost is incurred prior to July 1, and no amortization for the year if the cost is incurred after June 30. The company’s year ends December 31.
- The carrying value of patent No. 758-6002-1A on December 31, 2004? ________
- The carrying value of patent No. 758-6002-1A on December 31, 2008? ________
- The carrying value of patent No. 758-6002-1A on December 31, 2011? ________
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