Question

Giants Co acquired 3 different patents on 1/1/19. Cost, original grant date and estimated economic life for each patent are: Patent Cost Original Economic Life K9 $210,00011/09 ERA $720,0001/1/11 WHIP $570,00011/18 Grant Date(1/1/19) 7 years 16 years 15 years At 12/31/19, recovery tests are performed on the projects associated with the patents. Results are as follows Net Future Fair Value Patent Cash Flows K9 $165,000$144,000 ERA $695,000 $612,000 WHIP $515,000 $468,000 At 1/1/20, the remaining economic life of each patent was determined to be 12 more years (through 12/31/31). At 12/31/20, there is no impairment. *REQUIRED: 1) Determine the following: tge a) TOTAL amount of amortization expense reported FYE 12/31/19. b) TOTAL amount of loss on impairment (if any) reported FYE 12/31/19. c) TOTAL amount of amortization expense reported FYE 12/31/20. d) TOTAL carrying value for patents reported at 12/31/20

Answer 1

AC 1 2 000 M+ = . 3 IP (Alc)-RTP, N 02i -..iti çhareholde rs stsoight line rbtion method of the awe Economc ie ERA 20000 145,000 16 etosted FYE 2/3 0,000+45000 +33000 $113,000 o isa decac in ret Gaxvying value of on aset ナ, GOA.. Cost of oceuòbition 山rn pirmen 180,000 i80,000 6500o 07 of 32

P (Ale)-RTP, N 02) . Chareholders on on WRTP. (510000-38,000) 15,000 15,000 t l100o ERA: (320000 45000)uj0ro 15 dents te posted af 12/3/o ERA 2200045po 45000 630000 432,21u