1. In early January 2018, Persian Corporation applied for a trade name, incurring legal costs of P18,000. In January 2019, Persian incurred P7,800 of legal fees in a successful defense of its trade name.

Required:

a. Compute 2018 amortization, 12/31/18 book value, 2019 amortization, and 12/31/19 book value if the company amortizes the trade name over 10 years.

b. Compute the 2019 amortization and the 12/31/19 book value, assuming that at the beginning of 2019, Persian determines that the trade name will provide no future benefits beyond December 31, 2022.

c. Ignoring the response for part b, compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, based on new market research, Persian determines that the recoverable amount of the trade name is P16,000.

2.During 2018, Japanese Bobtail Ltd. spent P170,000 in research costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2018, and had a legal life of 20 years and a useful life of 10 years. Legal costs of P24,000 related to the patent were incurred as of October 1, 2018. (Amounts are in thousands.)

Required:

a. kindly make all journal entries required in 2018 and 2019 as a result of the transactions above.

b. On June 1, 2020, Japanese Bobtail spent P12,400 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2020. Make all journal entries required in 2020 and 2021.

c. In 2022, Japanese Bobtail determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2023. Also, make all journal entries required in 2022 and 2023.

thank you for your help