Total Expenses for the year 2020.

E12.10 (LO 1, 2, 4) (Accounting for Patents) Tones Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent Initial Cost Date Acquired Useful Life at Date Acquired $30,600 3/1/16 17 years $15,000 7/1/17 10 years $14,400 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 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 942 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 Tones estimates the expected future cash flows from Patent B will be as follows. Year 2021 2022 2023 Expected Future Cash Flows $2,000 2,000 2,000 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)