P12-2 (Accounting for Patents) Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitatorthat prevents certain types of air pollution. Fields does not manufacture or sell the products andprocesses it develops. Instead, it conducts research and develops products and processes which it patents,and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The historyof Fields patent number 758-6002-1A is as follows.Date Activity Cost2005–2006 Research conducted to develop precipitator $384,000Jan. 2007 Design and construction of a prototype 87,600March 2007 Testing of models 42,000Jan. 2008 Fees paid engineers and lawyers to prepare patentapplication; patent granted June 30, 2008 59,500Nov. 2009 Engineering activity necessary to advance the designof the precipitator to the manufacturing stage 81,500Dec. 2010 Legal fees paid to successfully defend precipitatorpatent 42,000April 2011 Research aimed at modifying the design of thepatented precipitator 43,000July 2015 Legal fees paid in unsuccessful patent infringement suitagainst a competitor 34,000Fields assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2013,it revised its useful life estimate downward to 5 remaining years. Amortization is computed for a full yearif the cost is incurred prior to July 1, and no amortization for the year if the cost is incurred after June 30.The company’s year ends December 31.InstructionsCompute the carrying value of patent No. 758-6002-1A on each of the following dates:(a) December 31, 2008.(b) December 31, 2012.(c) December 31, 2015.