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66. On January 1,2020, Intelligent Company provided the following information related to its intangible assets: a.) A trademark for P3,000,000. The trademark has a remaining
66. On January 1,2020, Intelligent Company provided the following information related to its intangible assets: a.) A trademark for P3,000,000. The trademark has a remaining legal life of 8 years. The trademark will be renewed in the future indefinitely without problem. b.) A patent for P4,500,000. The patent has an economic life for just 5 years. On December 31,2020, the intangible assets are tested for impairment. The trademark is now expected to generate cash flows of just P180,000 per year. The cash flows expected to be generated by the patent amount to P750,000 annually for each of the next 4 years. The appropriate discount rate for all intangible assets is 8%. The present value of an ordinary annuity of 1 at 8% for 4 periods is 3.31. Compute the total impairment loss
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