Marin 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 $52,800 3/1/21 20 years Patent B $20,400 7/1/22 10 years Patent C $16,800 9/1/23 8 years The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $352,500 were incurred during the year. 2. Patent D was purchased on July 1 for $10,080. This patent has a useful life of 12 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 Marin estimates the future cash flows from Patent B will be as follows: Year Future Cash Flows 2026 $2,400 2027 $2,400 2028 $2,400 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Click here to view factor tables