Tamarisk Industries has the following patents on its December 31, 2016, balance sheet. Patent Initial Date...

 

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Tamarisk Industries has the following patents on its December 31, 2016, balance sheet. Patent Initial Date Useful Life at Date Item Cost Acquired Acquired Patent A $42,432 3/1/13 17 years Patent B $15,960 7/1/14 10 years Patent C $18,240 9/1/15 4 years The following events occurred during the year ended December 31, 2017. 1. Research and development costs of $238,000 were incurred during the year. 2. Patent D was purchased on July 1 for $44,346. This patent has a useful life of 91/, 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, 2017. The controller for Tamarisk estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2018 $2,200 2019 2,200 2020 2,200 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Compute the total carrying amount of Tamarisk' patents on its December 31, 2016, balance sheet. (Round answer to 0 decimal places, e.g. 8,564.) Total carrying amount s Compute the total carrying amount of Tamarisk' patents on its December 31, 2017, balance sheet. (Round answer to 0 decimal places, e.g. 8,564.) Total carrying amount s Tamarisk Industries has the following patents on its December 31, 2016, balance sheet. Patent Initial Date Useful Life at Date Item Cost Acquired Acquired Patent A $42,432 3/1/13 17 years Patent B $15,960 7/1/14 10 years Patent C $18,240 9/1/15 4 years The following events occurred during the year ended December 31, 2017. 1. Research and development costs of $238,000 were incurred during the year. 2. Patent D was purchased on July 1 for $44,346. This patent has a useful life of 91/, 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, 2017. The controller for Tamarisk estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2018 $2,200 2019 2,200 2020 2,200 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Compute the total carrying amount of Tamarisk' patents on its December 31, 2016, balance sheet. (Round answer to 0 decimal places, e.g. 8,564.) Total carrying amount s Compute the total carrying amount of Tamarisk' patents on its December 31, 2017, balance sheet. (Round answer to 0 decimal places, e.g. 8,564.) Total carrying amount s

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1 Carrying amount of patents on December 31 2016 Carrying amount 56994 W... View the full answer