Ch $11$

Question $18$ of $20$

$\frac{-}{0\mathrm{.}65}$

Skysong Industries has the following patents on its December $31,2024,$ balance sheet:

$\backslash$table$[[$Patent Item,Initial Cost,Date Acquired,Useful Life at Date Acquired$],[$Patent A$,$$$51,600,\frac{3}{1}\frac{?}{21},20$ years$],[$Patent B$,$$$20,400,\frac{7}{1}\frac{?}{22},\backslash$table$[[10$ years$]]],[$Patent C$,$$$19,200,\frac{9}{1}\frac{?}{23},8$ years$]]$

The following events occurred during the year ended December $31,2025.$

Research and development costs of $$379,100$ were incurred during the year.

Patent D was purchased on July $1$ for $$10,800.$ This patent has a useful life of $12$ yea

As a result of reduced demands for certain products protected by Patent $B,$ a possible impairment of Patent $B\text{'}$s value may have occurred at December $31,2025.$ The controller for Skysong estimates the future cash flows from Patent B will be as follows:

$\backslash$table$[[$Year$,$Future Cash Flows$],[2026,$$$2,600$