Larkspur industries has the following patents on its December 31, 2016, balance sheet. Initial Useful Life at Date Patent Acquired $43,248 3/1/13 Patent A 17 years Patent B $16,440 7/1/14 10 years $20,160 9/1/15 Patent C 4 years The following events occurred during the year ended December 31, 2017 1. Research and development costs of $242,000 were incurred during the year. 2. Patent D was purchased on July 1 for $43,548. his patent has a useful life of 91/2 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 occumed at December 31, 2017. The controller for Larkspur estimates the expected future cash flows from Patent b will be as follows Expected Future Cash Flows Year $1,950 2018 2019 1,950 2020 1,950 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)