Tones Industries has the following patents on its December 31, 2007, balance sheet.The following events occurred during the year ended December 31, 2008.1. Research and development costs of $245,700 were incurred.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, 2008. The controller for Tones estimates the expected future cash flows from Patent B will be as followsYear Expected Future Cash Flows2009 ………. $2,0002010 ……… 2,0002011 ……… 2,000The proper discount rate to be used for these flows is 8%.Instructions(a) Compute the total carrying amount of Tones’s patents on its December 31, 2007, balance sheet.(b) Compute the total carrying amount of Tones’s patents on its December 31, 2008, balancesheet.
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Tones Industries has the following patents on its December 31



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