Check Your Understanding 4.16 Charming Bhd has provided the following information on its intangible assets. (a) Acquired a patent for RM1.5 million on 1 January, 2012. The patent is being amortized over its legal life of ten years. (b) Acquired a franchise on 1 January, 2013 for RM700,000. The franchise agreement has an estimated useful life of ten years. However Charming Bhd has to enter a competitive bidding at the end of 2017, and it is unlikely that the franchise will be retained beyond 2017. (c) Bought a broadcasting licence in 2014 for RM1 million. It is expected that the net cash inflows will be generated for an indefinite period of time. The licence has an initial term of five years, but the Charming Bhd can renew the licence indefinitely. What amount should be amortized for each intangible asset (if any) for the year ended 31 December, 2015?