Problem 2.6 The followina information was taken from the records of ABC Co. Patent 1 Patent 1 was purchased on July 1, 20x1 for P120,000. ABC Co. spent additional P35,000 early in 202 to improve the patent. On acquisition, the patent has a remaining legal life of 12 years and a remaining useful life of 8 years. Requirements: a. Provide the adjusting entries. (Use nominal accounts in the adjustments, rather than retained earnings.) b. Compute for the adjusted balances of the accounts related to Patent 1. Patent 2 Patent 2 was self-created in 201 for a total cost of P200,000. The costs were recognized en December 31, 201. On September 1, 202, ABC Co. registered the patent for a total cost of P60,000. The registration costs were charged as R\&D expense. Patent 2 was assessed to have a useful life of 25 years. Requirements: A. Provide the adjusting entries. B. Compute for the adjusted balances of the accounts related to Patent 2