Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Question #1 The following patents were on Prestos balance sheet as of December 31, 2018. PATENT ITEM INITIAL COST DATE ACQUIRED USEFUL LIFE AT DATE
Question #1
The following patents were on Prestos balance sheet as of December 31, 2018.
PATENT ITEM | INITIAL COST | DATE ACQUIRED | USEFUL LIFE AT DATE ACQUIRED |
Patent 421 | $30,600 | 3/1/15 | 17 years |
Patent 183 | $20,000 | 7/1/16 | 10 years |
Patent 709 | $15,500 | 9/1/18 | 5 years |
In 2019, Presto had the following occur:
- Research and development costs of $245,700 were incurred during the year.
- Patent 820 was purchased on July 1, 2019 for $37,480. This patent was recorded as having a useful life of 9 years.
What is the carrying amount of Prestos patents on December 31, 2019?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started