Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Windsor Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent Initial Cost $42,840 $16,200 $19,200
Windsor Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent Initial Cost $42,840 $16,200 $19,200 Date Acquired 3/1/16 7/1/17 9/1/18 Useful Life at Date Acquired 17 years 10 years 4 years The following events occurred during the year ended December 31, 2020. 1. 2. 3. Research and development costs of $240,000 were incurred during the year. Patent D was purchased on July 1 for $47,652. This patent has a useful life of 91/2 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, 2020. The controller for Windsor estimates the expected future cash flows from Patent B will be as follows. Year 2021 2022 Expected Future Cash Flows $1,850 1,850 1,850 2023 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Compute the total carrying amount of Windsor' patents on its December 31, 2019, balance sheet. Total carrying amount $ eTextbook and Media Assistance Used Compute the total carrying amount of Windsor' patents on its December 31, 2020, balance sheet. Total carrying amount $ e Textbook and Media Assistance Used
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started