Skysong Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $41,616 3/1/21 17 years Patent B $15,480 7/1/22 10 years Patent C $16,320 9/1/23 4 years The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $234,000 were incurred during the year. Patent D was purchased on July 1 for $47,196. This patent has a useful life of 91/2 years. 2. 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, 2025. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows.
Skysong Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $41,616 3/1/21 17 years Patent B $15,480 7/1/22 10 years Patent C $16,320 9/1/23 4 years The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $234,000 were incurred during the year. Patent D was purchased on July 1 for $47,196. This patent has a useful life of 91/2 years. 2. 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, 2025. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 13E
Question
![Skysong Industries has the following patents on its December 31, 2024, balance sheet.
Patent Item
Initial Cost Date Acquired
Useful Life at Date Acquired
Patent A
$41,616
3/1/21
17 years
Patent B
$15,480
7/1/22
10 years
Patent C
$16,320
9/1/23
4 years
The following events occurred during the year ended December 31, 2025.
1.
Research and development costs of $234,000 were incurred during the year.
Patent D was purchased on July 1 for $47,196. This patent has a useful life of 91/2 years.
2.
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, 2025. The controller for Skysong estimates the expected future cash flows from Patent B will
be as follows.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6bd473ff-6af8-4aa5-9aa7-ba1e915294d3%2Ff85b2c20-9e7d-4c0b-8e52-b24aeead52ab%2Fg6us196_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Skysong Industries has the following patents on its December 31, 2024, balance sheet.
Patent Item
Initial Cost Date Acquired
Useful Life at Date Acquired
Patent A
$41,616
3/1/21
17 years
Patent B
$15,480
7/1/22
10 years
Patent C
$16,320
9/1/23
4 years
The following events occurred during the year ended December 31, 2025.
1.
Research and development costs of $234,000 were incurred during the year.
Patent D was purchased on July 1 for $47,196. This patent has a useful life of 91/2 years.
2.
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, 2025. The controller for Skysong estimates the expected future cash flows from Patent B will
be as follows.
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