In early January 2024, Ivanhoe Corporation applied for a patient, incurring legal cost of $107,000. In January 2025, Ivanhoe incurred $21,960 of legal fees in a successful defense of its patent.

a) Compute 2024 straight-line amortization, 12/31/24 carrying amount, 2025 amortization and 12/31/25 carrying amount if the company amortizes the patent over 10 years.

2024 amortization	$10700
12/31/24 carrying value	$96300
2025 amortization	$13140
12/31/25	$105120

b) Compute the 2026 straight-line amortization and the 12/31/26 carrying amount, assuming that at the beginning of 2026, based on new market research, Ivanhoe determines that the fair value of the patent is $88,160. Estimated future cash flows from the patent are $103,320 on January 3, 2026.

2026 Amortization	$
12/31/26 carrying amount	$