Exercise 12-10 (Part Level Submission) Metlock Industries has the following patents on its December 31, 2016, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A Patent B Patent C $41,412 $15,360 $15,840 3/1/13 7/1/14 9/1/15 17 years 10 years 4 years The following events occurred during the year ended December 31, 2017. 1. Research and development costs of $233,000 were incurred during the year. 2. Patent D was purchased on July 1 for $26,904. This patent has a useful life of 91/2 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 Metlock estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2018 2019 2020 $1,950 1,950 1,950 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) (a) (a) Your answer is correct. Compute the total carrying amount of Metlock' patents on its December 31, 2016, balance sheet. (Round answer to o decimal places, e.g. 8,564.) Total carrying amount 54159 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Attempts: 1 of 3 used (b) x Your answer is incorrect. Try again. Compute the total carrying amount of Metlock' patents on its December 31, 2017, balance sheet. (Round answer to o decimal places, e.g. 8,564.) Total carrying amount 70366 Click if you would like to Show Work for this question: Open Show Work