Splish Brothers Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $48,000 3/1/16 20 years Patent B $22,800 7/1/17 10 years Patent C $16,800 9/1/18 8 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $342,800 were incurred during the year. 2. 3. Patent D was purchased on July 1 for $10,080. 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 Splish Brothers estimates the future cash flows from Patent B will be as follows.