a, b & c

G H D A F 1 Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain 2 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 4 5 9 6 7 Date: Activity: Cost: 8 2009-2011 Research conducted to develop precipitator $400,000 9 Jan 1, 2013 Fees paid engineers and lawyers to prepare patent 10 application patent granted Jan 1, 2012 500.000 11 Dec 31, 2015 Legal fees paid to successfully defend precipitator 12 patent 74.800 13 April 1 2016 Research aimed at modifying the design of the patented precipitator 55,000 15 July 1 2020 Legal fees paid in unsuccessful patent infringement 16 suit against a competitor 34.000 17 18 Fields assumed a useful life of 20 years when it received the initial precipitator 19 patent On January 1, 2018, it revised its useful life estimate downward to 6 20 remaining years. Amortization is computed for a full year if the cost is incurred prior to July 1, and no 21 amortization for the year if the cost is incurred after June 30. The company's year ends December 31 22 23 Instructions: 24 (a) Compute the carrying value of patent No. 758-6002-1A on December 31, 2013 25 26 27 28 (b) Compute the carrying value of patent No. 758-6002-1A on December 31, 2017 29 30 31 32 (c) Compute the carrying value of patent No. 758-6002-1A on December 31, 2020 33 34