In connection with your audit of the She Company, you noted the following transactions during 2020:

Jan. 2 - Paid legal fees of P450,000 and stock certificate costs of P249,000 to complete organization of the corporation.

Jan. 15 - Hired a clown to stand in front of the corporate office for 2 weeks and hand out pamphlets and candy to create goodwill for the new entity. Clown cost, P30,000; pamphlets and candy, P15,000.

Apr. 1 - Patented a newly developed process with costs as follows:

Legal fees to obtain patent P1,287,000

Patent application and licensing fees 190,500

Total P1,477,500

It is estimated that in 6 years other companies will have developed improved processes, making the company's process obsolete.

May 1 - Acquired both a license to use a special type of container and a distinctive trademark to be printed on the container in exchange for 18,000 shares of She no-par ordinary shares selling for P50 per share. The license is worth twice as much as the trademark, both of which may be used for 6 years.

Jul. 1 - Constructed a shed for P3,930,000 to house prototype of experimental models to be developed in future research projects.

Dec. 31 - Incurred salaries for an engineer and chemist involved in product development totaling P750,000 in 2020.

Note: It is the company's policy to take full year amortization in the year of acquisition.

Required: Based on the above and the result of your audit, determine the following:

1. Cost of Patent

A. 1,477,500

B. 190,500

C. 1,287,000

D. Zero

2. Cost of license

A. 450,000

B. 300,000

C. 600,000

D. Zero

3. Cost of trademark

A. 450,000

B. 300,000

C. 600,000

D. Zero

4. Carrying amount of Intangible assets as of December 31,2020

A. 2,031,250

B. 2,026,250

C. 1,981,250

D. Zero

5. Total amount resulting from the foregoing transactions that should be expensed when incurred

A. 2,971,500

B. 1,494,000

C. 5,424,000

D. Zero