INTANGIBLE ASSEST ASSIGNMENT V Q Limited is a company that holds several intangible assets as its main business. The following information in respect of these intangible assets is available Patents with a cost of Ksh.6,000,000 were purchased on Is January 2015. The expected usefu life of the patents was established as 30 years on the date of acquisition. Patents are amortised on a straight line basis over its useful life with residual values that are negligible. Residual values are not expected to change during the useful life of the assets. Copyright and several publications were acquired on 1st July 2017 for Ksh. 9,800,000. Legal costs and other professional costs to complete the transaction amounted to Ksh.200,000. On I July 2017 it was estimated that the copyright will have a useful life of 20 years and the assets were amortised over that period on a straight-line basis. Residual values were negligible and are not expected to change during the useful life of the assets. st On December 31, 2017 during the annual review, it was established that the remaining useful life of the abovementioned patents was 15 years, while that of the copyrights did not change. As a result of the above event, indicating impairment, the following information was collected: The market value of the patents, if sold, would be Ksh.4000,000. Brokers indicated that a fee of 2.5% would be charged on such sales transactions. The patents are expected to generate royalties of Ksh. 1,100,000 cash per year over their remaining useful life. The related costs are expected to be Ksh.100,000 per annum. An after tax rate of return of 14% is viewed as reasonable Required Journal entries to record the above in the book of Q Limited for the periods 2015, 2016 and 2017. Assume the financial year of Q Limited ends on December 31st