Skysong Industries Has The Following Patents On Its December 31 2019 Balance Sheet Patent Item Initial Cost Date Acqu 1 (64.96 KiB) Viewed 30 times
Skysong Industries Has The Following Patents On Its December 31 2019 Balance Sheet Patent Item Initial Cost Date Acqu 2 (11.44 KiB) Viewed 30 times
Skysong 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 $44,268 3/1/16 17 years Patent B $17,040 7/1/17 10 years Patent C $22,560 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $247,000 were incurred during the year. 2. Patent D was purchased on July 1 for $37,848. 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, 2020. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,200 2022 2,200 2023 2,200
(a) Compute the total carrying amount of Skysong' patents on its December 31, 2019, balance sheet. Total carrying amount $ tA
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