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Tones Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A 2. 1. 3. Patent B Patent C Year
Tones Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A 2. 1. 3. Patent B Patent C Year 2026 Initial Cost 2027 $30,600 $15,000 $14,400 The following events occurred during the year ended December 31, 2025. Expected Future Cash Flows Date Acquired $2,000 3/1/21 2,000 7/1/22 9/1/23 Research and development costs of $245,700 were incurred during the year. Patent D was purchased on July 1 for $36,480. This patent has a useful life of 9/2 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, 2025. The controller for Tones estimates the expected future cash flows from Patent B will be as follows. Useful Life at Date Acquired 17 years 10 years 4 years Tones Industries has the following patents on its December 31,2024 , balance sheet. The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $245,700 were incurred during the year. 2. Patent D was purchased on July 1 for $36,480. This patent has a useful life of 91/2 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 31,2025. The controller for Tones estimates the expected 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.) Click here to view factor tables. (a) Your answer is correct. Compute the total carrying amount of Tones' patents on its December 31, 2024, balance sheet. (Round answer to 0 decimal places e.8. 5,125.) Compute the total carrying amount of Tones' patents on its December 31, 2025, balance sheet. (Round present value foctor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971.) Total carrying amount
Tones Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A 2. 1. 3. Patent B Patent C Year 2026 Initial Cost 2027 $30,600 $15,000 $14,400 The following events occurred during the year ended December 31, 2025. Expected Future Cash Flows Date Acquired $2,000 3/1/21 2,000 7/1/22 9/1/23 Research and development costs of $245,700 were incurred during the year. Patent D was purchased on July 1 for $36,480. This patent has a useful life of 9/2 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, 2025. The controller for Tones estimates the expected future cash flows from Patent B will be as follows. Useful Life at Date Acquired 17 years 10 years 4 years
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