Answer:
SHEFFIELD LABORATORY
PATENT (NO. 78-6002-1A)
Carrying value as at Dec 31
2011 2015 2018
Cost $182,300 $349,000 $385,000
Amortization <u> (10,724) </u> <u>(79,433) </u> <u>(142,403)</u>
<u> 171,576 </u> <u> 269,567 </u> <u>242,597</u>
Cost
As at 31 Dec 2011
Design and construction of a prototype $89,000
Testing of models 40,600
Fees paid engineers and lawyers to prepare application <u> 52,700</u>
<u>$182,300</u>
As at 31 Dec 2012
Cost as at Jan 1, 2012 $182,300
Additional cost during the year:
Engineering activity necessary to advance. <u> $84,500 </u>
<u>$266,800</u>
As at 31 Dec 2013
Cost as at Jan 1, 2013 $266,800
Additional cost during the year:
legal fee paid <u>$40600 </u>
<u> $307,400</u>
As at 31 Dec 2014
Cost as at Jan 1, 2013 $307,400
Additional cost during the year:
Research aimed at modifying the design <u>$41,600 </u>
<u> $349,000</u>
As at 31 Dec 2018
Cost as at Jan 1, 2018 $349,000
Additional cost during the year:
legal fee paid in unseccesful patent infrigement. <u> $36,000 </u>
<u>$385,000</u>
Amortization for the year
Dec 31 2011 $182,300/17 = $10,724
Dec 31 2012
182,300/17 10,724
84,500/0 <u> - </u>
<u> 10,724</u>
<u />
Dec 31 , 2013 :
$182,300/17 = $10,724
84,500/16 = 5,281
40,600/0 = <u> - </u>
<u> 16,005</u>
Dec 31 2014 =
$182,300/17 = $10,724
84,500/16 = 5,281
40,600/16 = 2,538
41,600/17 = <u> 2,447</u>
<u> 20,990</u>
Dec 31 2018 =
$182,300/17 = $10,724
84,500/16 = 5,281
40,600/16 = 2,538
41,600/17 = 2,447
36,000/0 = <u> -</u>
<u> 20,990</u>
Explanation: