Tones Industries has the following patents on its December 31, 2007, balance sheet.

The following events occurred during the year ended December 31, 2008.
1. Research and development costs of $245,700 were incurred.
2. Patent D was purchased on July 1 for $36,480. 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, 2008. The controller for Tones estimates the expected future cash flows from Patent B will be as follows
Year Expected Future Cash Flows
2009 .......... $2,000
2010 ......... 2,000
2011 ......... 2,000
The proper discount rate to be used for these flows is 8%.
Instructions
(a) Compute the total carrying amount of Tones's patents on its December 31, 2007, balance sheet.
(b) Compute the total carrying amount of Tones's patents on its December 31, 2008, balancesheet.

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Patent Item nitial Cost Date Acquired Useful Life at Date Acquired 3/1/04 7/1/05 9/1/06 Patent A Patent B Patent С $30,600 $15,000 $14,400 17 years 10 years 4 years