Sage Hill Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost 1. 2. Patent A 3. Patent B Patent C $51,600 $19,200 $16,800 Date Acquired 3/1/16 7/1/17 The following events occurred during the year ended December 31, 2020. 9/1/18 Useful Life at Date Acquired 20 years 10 years 8 years Research and development costs of $358,000 were incurred during the year. Patent D was purchased on July 1 for $12,240. This patent has a useful life of 12 years. 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, 2020. The controller for Sage Hill estimates the future cash flows from Patent B will be as follows.
Sage Hill Industries has the following patents on its December 31,2019 , balance sheet. The following events occurred during the year ended December 31,2020. 1. Research and development costs of $358,000 were incurred during the year. 2. Patent D was purchased on July 1 for $12,240. 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, 2020. The controller for Sage Hill estimates the future cash flows from Patent B will be as follows. Sage Hill Industries has the following patents on its December 31,2019 , balance sheet. The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $358,000 were incurred during the year. 2. Patent D was purchased on July 1 for $12,240. 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 maj have occurred at December 31,2020 . The controller for Sage Hill estimates the future cash flows from Patent B will be as follows. The proper discount rate to be used for these flows is 8\%. (Assume that the cash flows occur at the end of the year) Sage Hill Industries has the following patents on its December 31,2019 , balance sheet. The following events occurred during the year ended December 31,2020. 1. Research and development costs of $358,000 were incurred during the year. 2. Patent D was purchased on July 1 for $12,240. 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, 2020. The controller for Sage Hill estimates the future cash flows from Patent B will be as follows. Sage Hill Industries has the following patents on its December 31,2019 , balance sheet. The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $358,000 were incurred during the year. 2. Patent D was purchased on July 1 for $12,240. 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 maj have occurred at December 31,2020 . The controller for Sage Hill estimates the future cash flows from Patent B will be as follows. The proper discount rate to be used for these flows is 8\%. (Assume that the cash flows occur at the end of the year)