P12.2B (LO 1,2,4,5) (Accounting for Patents) Dance Technologies holds a valuable patent (No. 782) for Dance-o-matic, an electronic system that provides individualized, intercalative dance instruction that also provides real-time feedback. Dance 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 Dance's patent number 782 is as follows: Date 2011-2012 Oct 2013 Activity Research conducted to develop Dance-o-matic Design and construction of prototype Testing of models Costs (engineering and legal fees) associated with patent Cost $538,500 211,000 Feb 2014 65,000 Aug 2014 50,400 Mar 2015 application; patent granted September 30, 2014 Engineering activity to advance the prototype to the 256,000 manufacturing stage July 2016 Legal fees paid in unsuccessful attempt to broaden the patent's coverage 23,000 Oct 2018 Research and development activity to advance the 165,000 real-time feedback component Jan 2021 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, 2019, 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, 2014. (b) December 31, 2018. (c) December 31, 2021.