Not sure the process of this question. Any help with it would be great.

P12-2(LO1,2,4,5)EXCEL(Accounting for Patents)Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history of Fields patent number 758-6002-1A is as follows.

Date

Activity

Cost

20082009Research conducted to develop precipitator$384,000

Jan. 2010Design and construction of a prototype87,600

March 2010Testing of models42,000

Jan. 2011Fees paid engineers and lawyers to prepare patent application; patent granted June 30, 201159,500

Nov. 2012Engineering activity necessary to advance the design of the precipitator to the manufacturing stage81,500

Dec. 2013Legal fees paid to successfully defend precipitator patent42,000

April 2014Research aimed at modifying the design of the patented precipitator43,000

July 2018Legal fees paid in unsuccessful patent infringement suit against a competitor34,000

Fields assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2016, it revised its useful life estimate downward to 5 remaining years. Amortization is computed for a full year if the cost is incurred prior to July 1, and no amortization for the year if the cost is incurred after June 30. The company's year ends December 31.

InstructionsCompute the carrying value of patent No. 758-6002-1A on each of the following dates:

(a)

December 31, 2011.

(b)

December 31, 2015.

(c)

December 31, 2018.