Patent. Dexter Company purchases a patent from Santali Corporation for a price of P300,000 and incurs legal fees and consulting fees related to the purchase in the amounts of P40,000 and P60,000, respectively. The patent's remaining life is 15 years, but because of the market competition, its useful life is estimated to be only 10 years. a. What is the total acquisition cost of the patent? b. How much is the annual amortization of the patent? c. At what amount should the patent be reported on the statement of financial position after three years? 3 Copyright. Hearth Company purchases a copyright for P120,000 and incurs legal fees of P15,000 related to the purchase. The estimated economic life is 40 years. What is the amount of the annual amortization? Franchise. Seattle Corporation pays a franchise fee of 20 million to enable it to sell Good's product for the next 20 years. In addition, it is required to pay an annual fee of P100,000. a. What is the amount of the annual amortization? b. What is carrying amount of the franchise after five years? c. What is the decrease in income for the year