Please select the best choice. Thank you.

ABC Co. purchased a patent on January 1, 2018 for P300,000. The patent was being amortized over its remaining legal life of 15 years. During 2020, ABC Co. determined that the economic benefits of the patent would not last longer than 10 years from the date of acquisition. What amount should be charged to patent amortization expense for the year ended December 31 2020?*

A.32,500

b.26,000

c. 20,000

D. 17,333

E. answer not given

On January 1, 2020, CAB Co. issued 9% bonds in the amount of P2,500,000, which mature on January 1, 2030. The bonds were issued for P2,347,500 to yield 10%. Interest is payable annually on December 31. The entity uses the interest method of amortization. What is carrying amount of the bonds payable on June 30, 2020? *

A. P2,347,500

B. P2,352,375

C. P2,355,125

D. P2,500,000

E. answer not given

ALI Company issued 120,000 ordinary shares, of which 5,000 shares were held as treasury on January 1, 2020. The following were the transactions during the year: May 1 1,000 treasury shares were sold. Aug 1 10,000 unissued shares were sold. Nov 15 A 2 for 1 share split took effect. Determine the number of shares issued and outstanding on December 31, 2020. *

A. 122,000

B. 126,000

C. 252,000

D. 260,000

E. answer not given

BABA Company has 2,000 shares of 5%, P100 par non-cumulative preference share outstanding at December 31, 2020. No dividends have been paid on this share for 2019 or 2020. Compute the dividends in arrears at December 31, 2020. *

A. 0

B. 120,000

C. 360,000

D. 480,000

On Jan. 1, 2020, GARBO Company granted XYZ, its executive, compensatory share options to buy 10,000 share of P10 par value. The options call for a price of P20 per share and are exercisable in 3 years following grant date. XYZ exercised the options on December 31, 2020. The market price of the share was P60 on January 1, 2020 and P70 on December 31,2020. The fair value of the share option is P30 on the date of grant. By what net amount should equity increase as a result of the grant and exercise of the options? *

A. 200,000

B. 300,000

C. 500,000

D. 700,000

E. answer not given

On January 1, 2020, GALANTY Company granted XYZ, its president 20,000 share appreciation rights for past services. These rights are exercisable immediately and expire on January 1, 2022. During exercise, XYZ is entitled to receive cash for the excess of the share market price on the exercise date over the market price on the grant date. XYZ did not exercise any of the rights during 2020. The market price of GALANTY's share was P30 on January 1, 2020 and P45 on December 31, 2020. As a result of the share appreciation rights, GALANTY should recognize compensation expense for 2020 of? *

A. 0

B. 100,000

C. 300,000

D. 600,000

E. answer not given