2. Sim Laboratories holds a valuable patent (No. 125-1977-1E) on a precipitator. that prevents certain types of air pollution. Sim does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, Sim assumed a useful life of 17 years when it received the initial and then assigns the patents to manufacturers on a royalty basis. Occasionally, it sells a patent. The history of Sim patent number 125- precipitator patent. On January 1, 2015, it revised its useful life estimate 1977-1E is as follows: downward to 5 remaining years. Amortization is computed for a full year Date if the cost is incurred prior > July 1 and no amortization for the year if the Activity Cost 2007- tesearch conducted to develop precipitator cost is incurred after June 23. The company's year ends December 31. 2008 P384,000 Jan. 2009 Design and construction of a prototype 87,600 Mar. 2009 Testing of models 42,000 Jan. 2010 Fees paid engineers and lawyers to prepare a Required: patent application; patent granted June 30, Compute the carrying value of patent No. 125-1977-1E on each of the 2010 62,050 following dates: Nov. 2011 Engineering activity necessary to advance the design of the precipitator to the (a) December 31, 2010. manufacturing stage 81.500 Dec. 2012 Legal fees paid to successfully defend (b) December 31, 2014. precipitator patent 35,700 (c) December 31, 2017. Apr. 2013 Research aimed at modifying the design of the patented precipitator 43,000 July 2017 Legal fees paid in unsuccessful patent infringement suit against a competitor 34,000