Windsor Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A Patent B Patent C 3. Year The following events occurred during the year ended December 31, 2025. 2026 2027 Initial Cost Date Acquired $42,029 $15,720 $17,280 1. Research and development costs of $236,000 were incurred during the year. 2 Patent D was purchased on July 1 for $47,310. This patent has a useful life of 9¹/2 years. 2028 (a) Expected Future Cash Flows $2,100 2,100 2,100 3/1/21 7/1/22 9/1/23 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 Windsor estimates the expected future cash flows from Patent B will be as follows. Useful Life at Date Acquired Your answer is incorrect. 17 years 10 years 4 years 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. Total carrying amount $ Compute the total carrying amount of Windsor's patents on its December 31, 2024, balance sheet. (Round answer to 0 decimal places ,e.g. 5,125.)

Windsor Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A Patent B Patent C 3. Year The following events occurred during the year ended December 31, 2025. 2026 2027 Initial Cost Date Acquired $42,029 $15,720 $17,280 1. Research and development costs of $236,000 were incurred during the year. 2 Patent D was purchased on July 1 for $47,310. This patent has a useful life of 9¹/2 years. 2028 (a) Expected Future Cash Flows $2,100 2,100 2,100 3/1/21 7/1/22 9/1/23 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 Windsor estimates the expected future cash flows from Patent B will be as follows. Useful Life at Date Acquired Your answer is incorrect. 17 years 10 years 4 years 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. Total carrying amount $ Compute the total carrying amount of Windsor's patents on its December 31, 2024, balance sheet. (Round answer to 0 decimal places ,e.g. 5,125.)

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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