Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain 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. Cost: $400,000 700,000 Date: Activity: 2009-2011 Research conducted to develop precipitator Jan 1. 2013 Fees paid engineers and lawyers to prepare patent application; patent granted Jan 1, 2012 Dec 31, 2015 Legal fees paid to successfully defend precipitator patent April 1 2016 Research aimed at modifying the design of the patented precipitator July 1 2020 Legal fees paid in unsuccessful patent infringement suit against a competitor 93,800 55,000 34,000 Fields assumed a useful life of 20 years when it received the initial precipitator patent. On January 1, 2018, it revised its useful life estimate downward to 6 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 year ends December 31. Instructions: (a) Compute the carrying value of patent No. 758-6002-1A on December 31, 2013