Fields Laboratories holds a valuable patent $($No$.758-6002-1$A$)$ 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 $758-6002-$

$1$A is as follows.

Date: Activity: Cost:

$2012-2015$ Research conducted to develop precipitator $$650,000$

Jan $1.2016$ Fees paid engineers and lawyers to prepare patent

application; patent granted Jan $1,20161,240,000$

Dec $31.2018$ Legal fees paid to successfully defend precipitator

patent $289,000$

Jan $1.2020$ Research aimed at modifying the design of the

patented precipitator $165,000$

July $12023$ Legal fees paid in unsuccessful patent infringement

suit against a competitor $216,000$

Fields assumed a useful life of $20$ years when it received the initial precipitator

patent. On January $1,2021,$ it revised its useful life estimate downward to $4$

remaining years.

Instructions:

$($a$)$ Compute the carrying value of patent No$.758-6002-1$A on December $31,2016.$

$($b$)$ Compute the carrying value of patent No$.758-6002-1$A on December $31,2020.$

$($c$)$ Compute the carrying value of patent No$.758-6002-1$A on December $31,2023.$