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Abraham developed a patent at a cost of P400,000 and spent P102,000 for the licensing of the patent including legal fees, on January 2, 2003.
Abraham developed a patent at a cost of P400,000 and spent P102,000 for the licensing of the patent including legal fees, on January 2, 2003. The patent will be useful for the entire legal life. On January 22, 2005, the company paid P60,000 to the lawyers for their services in connection with a successful defense of the patent. On January 2, 2007, the company acquired a competing patent for P86,592. In order to protect the original patent.
The competing patent has 15 years to run from the date of acquisition.
Required:
- journal entries from January 1, 2003 up to December 31, 2007.
- Carrying Value of patent as of December 31, 2007.
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