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Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain 1 2 types of air pollution. Fields does not manufacture or

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Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain 1 2 types of air pollution. Fields does not manufacture or sell the products and processes iRt develops Instead, it conducts research and develop products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history ol Fields patent number 758-6002-1A is as follows Date: Activit Cost 2006-2007 Research conducted to develop precipitator $384,000 87800 42,000 Jan 2009Fees paid engineers and lawyers to prepare patent Nov. 2010 Engineering aotivity necessary to advance the design Dec. 2011 Legal fees paid to successfully efend predipit ator April 2012Research aimed st modifying the design of the July 2016Legal fees paid in unsuccessful patent infringement application patent granted June 30, 2009 80,000 13 of the precipitator to the manufacturing stage 81,500 16 patent 42,330 18 patented precipitator 20 suit against a competitor 34,000 22 Fields assumed a useful life of 23 patent On January 1,2014, it revised its useful life estimate dounward to 24 remaining sears. Amortization is computed for a full year if the cost is incurred prior to July 1 and no 25 amortization for theyear if the cost is incurred after June 30. The compang's se ar ends December 31 26 20 years when it received the initial precipitator 28 (a) Compute the carrying value of patent No.758-6002-1A on December 31,2009 29 Costs to obtain patent Jan. 2009 2009 amortization Carrying value, 12/31o9 30 32 34 35 (b) Compute the oarrying value of patent No. 758-6002-1A on December 31, 2013. Carrying value of patent, Jan 1, 2010 38 40 42 43 Carrying value, Dec. 31, 2013 45 46 47 48-] [c] Compute theo arrying value of patent No. 758-6002-1A on December 31, 2016. 49 Carrging value Jan 1,2014 51 Carrying value. Dec 31 2016

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