Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Attempt in Progress Pina Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Pina does not

image text in transcribed
image text in transcribed
Current Attempt in Progress Pina Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Pina 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 Pina patent number 758-6002-1A is as follows. Date Activity Cost 2011-2012 Research conducted to develop precipitator $370,000 Jan. 2013 Design and construction of a prototype 88,000 Testing of models 70,000 March 2013 Jan. 2014 Fees pald engineers and lawyers to prepare patent application; patent granted June 30, 2014 68,000 Nov. 2015 Engineering activity necessary to advance the design of the precipitator to the manufacturing stage Dec 2016 Legal fees paid to successfully defend precipitator patent 95,000 70,000 71,000 April 2017 Research aimed at modifying the design of the patented precipitator July 2021 Legal fees paid in unsuccessful patent infringement suit against a competitor 35,000 July 2021 Legal Tees paid in unsuccessful patent infringement suit against a competitor 35,000 Pina assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2019, it revised its useful life estimate downward to 5 remaining years. Amortization is computed for a full year if the cost is incurred prior to July 1, and no amortization for the year if the cost is incurred after June 30. The company's your ends December 31. Compute the carrying value of patent No. 758-6002-1A on each of the following dates: (a) December 31, 2014 $ (b) December 31, 2018 $ (c) December 31, 2021 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Non Accounting Students

Authors: John R. Dyson

7th Edition

0273709224, 9780273709220

More Books

Students also viewed these Accounting questions

Question

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago