Exercise 12-10

Shamrock 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******************$44,064********3/1/13****************17 years

Patent B******************$16,920********7/1/14****************10 years

Patent C******************$22,080********9/1/15*****************4 years

The following events occurred during the year ended December 31, 2017.

1.Research and development costs of $246,000 were incurred during the year.2.Patent D was purchased on July 1 for $45,030. This patent has a useful life of 9¹/₂years.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 Shamrock estimates the expected future cash flows from Patent B will be as follows.

Year***********************************Expected Future Cash Flows

2018***********************************$2,150

2019***********************************2,150

2020***********************************2,150

The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)

Compute the total carrying amount of Shamrock' patents on its December 31, 2016, balance sheet.(Round answer to 0 decimal places, e.g. 8,564.)

Total carrying amount $___________________

Compute the total carrying amount of Shamrock' patents on its December 31, 2017, balance sheet.(Round answer to 0 decimal places, e.g. 8,564.)

Totalcarrying amount $_________________