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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

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.
Date: Activity: Cost:
2010-2013 Research conducted to develop precipitator $400,000
Jan 1. 2014
Fees paid engineers and lawyers to prepare patent application; patent granted Jan 1, 2014
960,000
Dec 31. 2016
Legal fees paid to successfully defend precipitator patent
84,000
April 1 2017
Research aimed at modifying the design of the patented precipitator
55,000
July 1 2021
Legal fees paid in unsuccessful patent infringement suit against a competitor
34,000
Fields assumed a useful life of 20 years when it received the initial precipitator
patent. On January 1, 2019, 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, 2014.
(b) Compute the carrying value of patent No. 758-6002-1A on December 31, 2018.
(c) Compute the carrying value of patent No. 758-6002-1A on December 31, 2021.
image text in transcribed
9:28 ch 12 hw 2021 FA.xlsx Patents Goodwill Sheet3 able patent (No. 758-6002-1A) on a precipitator that prevents certain types of air acture or sell the products and processes it develops. Instead, it conducts research esses which it patents, and then assigns the patents to manufacturers on a royalty ent. The history of Fields patent number 758-6002-1A is as follows. Cost: $400,000 960.000 Activity: Research conducted to develop precipitator Fees paid engineers and lawyers to prepare patent application patent granted Jan 1, 2014 Legal fees paid to successfully defend precipitator patent Research aimed at modifying the design of the patented precipitator Legal fees paid in unsuccessful patent infringement suit against a competitor 84,000 55,000 34,000 20 years when it received the initial precipitator vised its useful fe estimate downward to 6 computed for a full year if the cost is incurred prior to July 1, and no amortization for iter June 30. The company's year ends December 31. e of patent No. 758-6002-1A on December 31, 2014. me of patent No. 758-6002-1A on December 31, 2018 of patent No. 758-6002-1A on December 31, 2021. 9:28 ch 12 hw 2021 FA.xlsx Patents Goodwill Sheet3 able patent (No. 758-6002-1A) on a precipitator that prevents certain types of air acture or sell the products and processes it develops. Instead, it conducts research esses which it patents, and then assigns the patents to manufacturers on a royalty ent. The history of Fields patent number 758-6002-1A is as follows. Cost: $400,000 960.000 Activity: Research conducted to develop precipitator Fees paid engineers and lawyers to prepare patent application patent granted Jan 1, 2014 Legal fees paid to successfully defend precipitator patent Research aimed at modifying the design of the patented precipitator Legal fees paid in unsuccessful patent infringement suit against a competitor 84,000 55,000 34,000 20 years when it received the initial precipitator vised its useful fe estimate downward to 6 computed for a full year if the cost is incurred prior to July 1, and no amortization for iter June 30. The company's year ends December 31. e of patent No. 758-6002-1A on December 31, 2014. me of patent No. 758-6002-1A on December 31, 2018 of patent No. 758-6002-1A on December 31, 2021

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