65. Careful Company has provided information on intangible assets as follows: a.) Spent a total of P400,000 in developing a patent which was applied for on July 1,2017. The patent was issued on January 1, 2018. The cost of licensing was nominal, and the useful life of the patent is 10 years. On January 1,2020, the entity purchased a competing patent for P800,000. The patent has a remaining useful life of 16 years. b.) At the beginning of 2020, Careful signed an agreement to operate as a franchisee of perfect Pizza for an initial franchise fee of P5,000,000 for a period of 10 years. Of this amount P2,000,000 was paid when the agreement was signed and the balance payable in five annual payments at every year-end. The franchisee signed a 10% interest-bearing note for the balance. The PV of 1 at 10% for 5 periods is 0.62 and the PV of an ordinary annuity of 1 at 10% for 5 periods is 3.79. In return for the initial franchise fee, the franchisor will help in locating the site, negotiate the lease or purchase the site, supervise the construction activity and provide training to employees. The initial services required of the franchisor are substantially performed. The agreement further provides that the franchisee shall pay a periodic fee of 5% based on the annual gross sales. During the current year, Careful realized a gross sales of P1,000,000. Compute the total carrying value of the intangible assets on December 31, 2020