Sheridan Industries has the following patents on its December 31, 2024, balance sheet.(b)Patent ItemYearPatent A22026Patent B2027(a)Patent CThe following events occurred during the year ended December 31, 2025.1 Research and development costs of $235,000 were incurred during the year.Patent D was purchased on July 1 for $45,372. 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 mayhave occurred at December 31, 2025. The controller for Sheridan estimates the expected future cash flows from Patent Bwill be as follows.3.Show Transcribed Text2028Initial Cost$41,820$15,600$16,800Expected FutureCash Flows$2,0502,0502,050✓ Your answer is correct.Total carrying amountThe proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year)Click here to view factor tables.Total carrying amount $Show Transcribed TextDate Acquired3/1/217/1/229/1/23x Your answer is incorrect.Compute the total carrying amount of Sheridan's patents on its December 31, 2024, balance sheet. (Round answer to O decimalplaces eg 5,125)Useful Life at Date Acquired17 years10 years4 yearsS552903109264,6Ć3Compute the total carrying amount of Sheridan's patents on its December 31, 2025, balance sheet. (Round present value factorcalculations to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places eg. 58,971.)C

Intangible Assets -Assets that are recognised but lack physical substance and are not monetary are…

Sheridan Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A Patent B Patent C 1 2 Initial Cost 3. $41,820 $15,600 $16,800 Date Acquired 3/1/21 The following events occurred during the year ended December 31, 2025. Research and development costs of $235,000 were incurred during the year. Patent D was purchased on July 1 for $45,372. This patent has a useful life of 91/2 year As a result of reduced demands for certain products protected by Patent B 7/1/22 9/1/23 Useful Life at Date Acquired 17 years 10 years 4 years

Sheridan Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A Patent B Patent C 1 2 Initial Cost 3. $41,820 $15,600 $16,800 Date Acquired 3/1/21 The following events occurred during the year ended December 31, 2025. Research and development costs of $235,000 were incurred during the year. Patent D was purchased on July 1 for $45,372. This patent has a useful life of 91/2 year As a result of reduced demands for certain products protected by Patent B 7/1/22 9/1/23 Useful Life at Date Acquired 17 years 10 years 4 years

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 8P

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