A B C D E F G H 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: Cost: 2010-2013 Jan 1. 2014 Dec 31. 2016 2 Activity: Research conducted to develop precipitator Fees paid engineers and lawyers to prepare patent application; patent granted Jan 1, 2014 Legal fees paid to successfully defend precipitator patent $560,000 1,040,000 86,000 B April 1 2017 Research aimed at modifying the design of the patented precipitator 155,000 5 6 July 1 2021 Legal fees paid in unsuccessful patent infringement suit against a competitor 226,000 7 8 Fields assumed a useful life of 9 patent. On January 1, 2019, it revised its useful life estimate downward to 4 20 years when it received the initial precipitat 20 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 21 22 23 24 25 26 27 28 29 Instructions: (a) Compute the carrying value of patent No. 758-6002-1A on December 31, 2014. cost to obtain patent Jan. 1st 1,040,000 2014 amortization (1,040,000/20) 52,000 carrying value 988,000 (b) Compute the carrying value of patent No. 758-6002-1A on December 31, 2018. 30 31 32 (c) Compute the carrying value of patent No. 758-6002-1A on December 31, 2021. 33 34 35