Accounting 2 Problems

Nov 10th, 2014
SKTFaker
Category:
Accounting
Price: $5 USD

Question description

E12-11(Accounting for Patents) Tones Industries has the following patents on its December 31, 2013,

Patent Item    Initial Cost               Date Acquired                     Useful life at Date Acquired

Patent A         30,600                      3/1/10                                              17 years

Patent B         15,000                      7/1/11                                              10 years

Patent C         14,000                      9/1/12                                               4 years

The following events occurred during the year ended December 31, 2014.

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 9 1/2years.

3.As a result of reduced demands for certain products protected by Patent B, possible impairment of Patent B's value may have occurred at December 31, 2014. The controller for Tones estimates the expected future cash flows from Patent B will be as follows.

Year     Expected Future Cash Flows

2015                 2,000

2016                 2,000

2017                 2,000

The proper discount rate to be used for these flows is 8%(Assume that the cash flows at the end of the year.)

Instructions

(a)Compute the total carrying amount of Tones' patent on its December 31, 2013, balance sheet.

(b)Compute the total carrying amount of Tones' patent on its December 31, 2014, balance sheet.

You have the answer for a I need the answer for b.


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: New York University
PREMIUM TUTOR

Studypool has helped 1,244,100 students

7 Reviews


Summary
Quality
Communication
On Time
Value
kpcutie
Dec 1st, 2016
" Excellent job "
Hemapathy
Nov 17th, 2016
" all I can say is wow very fast work, great work thanks "
BlueOcean
Nov 4th, 2016
" Awesome! Exactly what I wanted. "
kevin12622
Oct 26th, 2016
" Goes above and beyond expectations ! "
ashleyisgod
Oct 12th, 2016
" Top quality work from this guy! I'll be back! "
likeplum4
Oct 3rd, 2016
" Excellent work as usual "
Molly_Moon
Sep 20th, 2016
" AMAZING as always! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors