Thomas Industries has the following patents on its December 31, 2014, balance sheet.

The following events occurred during the year ended December 31, 2015.
1. Research and development costs of $347,000 were incurred during the year.
2. Patent D was purchased on July 1 for $10,800. This patent has a useful life of 12 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, 2015. The controller for Thomas estimates the future cash flows from Patent B will be as follows.
Year Future Cash Flows
2016 ......... $2,500
2017 ......... $2,500
2018 ......... $2,500
The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)

Instructions
(a) Compute the total carrying amount of Thomas€™s patents on its December 31, 2014, balance sheet.
(b) Compute the total carrying amount of Thomas€™s patents on its December 31, 2015, balancesheet.

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Patent Item Patent A Patent B Patent C Initial Cost $48,000 $19,200 $16,800 Useful Life at Date Acquired 20 years 10 years 8 years Date Acquired