P$11\mathrm{.}2$B $($LO $1,4)($Accounting for Patents$)$ Dance Technologies holds a valuable patent $($No$.782)$

for Dance$-$o$-$matic, an electronic system that provides individualized, interactive dance instruction that

also provides real$-$time feedback. Dance does not manufacture or sell the products and processes it devel$-$

ops. 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 Dance$$s

patent number $782$ is as follows:

Date Activity Cost

$20162017$ Research conducted to develop Dance$-$o$-$matic $$538,500$

Oct $2018$ Design and construction of prototype $211,000$

Feb $2019$ Testing of models $65,000$

Aug $2019$ Costs $($engineering and legal fees$)$ associated with patent

application; patent granted September $30,2019$

$50,400$

Mar $2020$ Engineering activity to advance the prototype to the

manufacturing stage

$256,000$

July $2021$ Legal fees paid in unsuccessful attempt to broaden the

patent$$s coverage

$23,000$

Oct $2023$ Research and development activity to advance the

real$-$time feedback component

$165,000$

Jan $2026$ Legal fees paid to successfully defend the patent against

a competitor

$20,500$

Dance assumed a useful life of $14$ years when it received the initial patent. On January $1,2024,$ it revised

its useful life estimate downward to $6$ 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 $31.$

Instructions

Compute the carrying value of patent No$.782$ on each of the following dates:

a$.$ December $31,2019.$

b$.$ December $31,2023.$

c$.$ December $31,2026.$