Bramble Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Initial Cost Date Acquired Patent A $43,248 3/1/21 Patent B $16,440 7/1/22 Patent C $20,210 9/1/23 The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $242,000 were incurred during the year. 2. Patent D was purchased on July 1 for $43,548. 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, 2025. The controller for Bramble estimates the expected future cash flows from Patent B be as follows. Year 2026 2027 2028 Expected Future Cash Flows $1,950 1,950 Useful Life at Date Acquired 17 years 10 years 4 years 1,950

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Hw.100.

 

Your answer has been saved. See score details after the due date.
Compute the total carrying amount of Bramble's patents on its December 31, 2024, balance sheet. (Round answer to O decimal
places,e.g. 5,125.)
Total carrying amount $
(b)
eTextbook and Media
59,266
Total carrying amount
Attempts: 1 of 1 used
Compute the total carrying amount of Bramble's patents on its December 31, 2025, balance sheet. (Round present value factor
calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places e.g. 58,971.)
Transcribed Image Text:Your answer has been saved. See score details after the due date. Compute the total carrying amount of Bramble's patents on its December 31, 2024, balance sheet. (Round answer to O decimal places,e.g. 5,125.) Total carrying amount $ (b) eTextbook and Media 59,266 Total carrying amount Attempts: 1 of 1 used Compute the total carrying amount of Bramble's patents on its December 31, 2025, balance sheet. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places e.g. 58,971.)
Bramble Industries has the following patents on its December 31, 2024, balance sheet.
Patent Item
Patent A
Patent B
Patent C
1.
2.
The following events occurred during the year ended December 31, 2025.
3.
Initial Cost
$43,248
$16,440
$20,210
Year
2026
2027
2028
Date Acquired
3/1/21
7/1/22
9/1/23
Useful Life at Date Acquired
17 years
10 years
4 years
Research and development costs of $242,000 were incurred during the year.
Patent D was purchased on July 1 for $43,548. This patent has a useful life of 9¹/2 years.
Expected Future
Cash Flows
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 Bramble estimates the expected future cash flows from Patent B will
be as follows.
$1,950
1,950
1,950
The 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.
Transcribed Image Text:Bramble Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Patent A Patent B Patent C 1. 2. The following events occurred during the year ended December 31, 2025. 3. Initial Cost $43,248 $16,440 $20,210 Year 2026 2027 2028 Date Acquired 3/1/21 7/1/22 9/1/23 Useful Life at Date Acquired 17 years 10 years 4 years Research and development costs of $242,000 were incurred during the year. Patent D was purchased on July 1 for $43,548. This patent has a useful life of 9¹/2 years. Expected Future Cash Flows 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 Bramble estimates the expected future cash flows from Patent B will be as follows. $1,950 1,950 1,950 The 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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 5 images

Blurred answer
Knowledge Booster
Accounting for Intangible assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education