Compute the total carrying amount of Metlock's patents on its December 31, 2025 balance sheet. (2024 carrying amount is $56,994.)Please don't give image format Metlock Industries has the following patents on its December 31, 2024, balance sheet.Patent ItemPatent APatent BPatent C2.3.Year2026Initial Cost Date AcquiredThe following events occurred during the year ended December 31, 2025.2027$42,432$15,960$18,2401. Research and development costs of $238,000 were incurred during the year.Patent D was purchased on July 1 for $44,346. 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 Metlock estimates the expected future cash flows from Patent B willbe as follows.2028Expected FutureCash Flows$2,2003/1/212,2007/1/222,2009/1/23Useful Life at Date Acquired17 years10 years4 yearsThe proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)

An intangible asset is a nonphysical asset such as a patent, copyright, or goodwill. The company…

Answered: Compute the total carrying amount of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Compute the total carrying amount of Metlock's patents on its December 31, 2025 balance sheet. (2024 carrying amount is $56,994.) Please don't give image format

Metlock Industries has the following patents on its December 31, 2024, balance sheet.
Patent Item
Patent A
Patent B
Patent C
2.
3.
Year
2026
Initial Cost Date Acquired
The following events occurred during the year ended December 31, 2025.
2027
$42,432
$15,960
$18,240
1. Research and development costs of $238,000 were incurred during the year.
Patent D was purchased on July 1 for $44,346. 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 may
have occurred at December 31, 2025. The controller for Metlock estimates the expected future cash flows from Patent B will
be as follows.
2028
Expected Future
Cash Flows
$2,200
3/1/21
2,200
7/1/22
2,200
9/1/23
Useful Life at Date Acquired
17 years
10 years
4 years
The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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