Kingbird Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $44,676 3/1/21 17 years Patent B $17,280 7/1/22 10 years Patent C $23,520 9/1/23 4 years The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $249,000 were incurred during the year. 2. Patent D was purchased on July 1 for $46,512. This patent has a useful life of 9/2 years. 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, 2025. The controller for Kingbird estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2026 $1,850 2027 1,850 2028 1,850 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)