agreement requires payment of P200, 000 on January 1, 2018, with the balance payable in three equal annual installment of P100, 000 payable at the end of each year starting December 31, 2018. The agreement also specifies that ACE will have to pay JGS Generators an amount equal to 5 of its annual revenue not later than February 14 of the year following the year of sale. Shortly after the agreement was signed, ACE Company learned that JGS Generators granted a franchise to another entity for an initial franchise fee of P400,000 cash. The franchise has an indefinite life but the company estimates that this franchise will benefit the Company only for 10 years. Total revenue in 2018 amounted to P1, 500, 000. In addition, the company paid P100, 000 to an advertising agency to promote the products resulting from the franchise agreement. Costs of training employees who will use the machine amounted to P50, 000. 3. During 2018, the Company incurred costs to develop and produce computers software product, as follows: Salaries of the programmers doing the research 1, 300, 000 Costs incurred before technological feasibility is 1, 400, 000 established Other expenses incurred prior to establishment of 600, 000 technological feasibility Coding costs to establish technological feasibility 450, 000 Testing costs after establishing technological feasibility 100, 000 Costs to produce product masters 50, 000 Costs to produce the software from the masters 370, 000 Costs of packaging 20, 000 Website development costs 150, 000 The company estimates that the software will have an economic life of 4 years. Requirement : Compute for the carrying value of the intangible assets December 31, 2018