Information concerning Tina Corporation's intangibles is as follows:

(a)On January 1, 2002, Tina signed an agreement to operate a franchise of Rapid, Inc. for an initial franchise fee of P85,000.Of this amount, P25,000 was paid when the agreement was signed and the balance is payable in four annual payments of P15,000 each beginning January 1, 2003.The present value at January 1, 2002, of the four annual payments discounted at 14% (the implicit rate for a loan at this type) is P43,700.The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually.Tina's revenue from the franchise for 2002 was P900,000.Tina estimates the useful life of the franchise to be ten years.

(b)Tina incurred P78,000 of experimental and development costs in its laboratory to develop a patent which was granted on January 2, 2002.Legal fees and other costs associated with registration of the patent totaled P48,000.Tina estimates that the useful life of the patent will be eight years.

(c)A trademark was purchased from Walton Company for P40,000 on July 1, 1999.Expenditures totaling P68,000 were paid on July 1, 2002.Tina estimates that the useful life of the trademark will be 20 years from the date of acquisition.

15.Amortization of intangibles for 2002 is:

(a) P10,870 (b) P14,870 (c) P16,870 (d) P18,870

16.The unamortized cost of intangibles on December 31, 2002 is:

(a) P42,000 (b) P136,830 (c) P158,130 (d) P202,830