Problem 4 The following information pertains to Scranton Co.: a. A patent was purchased from Staples Co. for P12,000,000 on January 1, 2021. On the acquisition date, the patent was estimated to have a useful life of 10 years, the patent had a carrying amount of P12,000,000 in the books of Staples when it was sold. b. On February 1, 2022, a franchise was purchased from Halpert Papers for P2,880,000. The contract, which runs for 20 years, provides that 5% of revenue from the franchise must be paid to Halpert every December 31. Revenue from the franchise for 2022 was P15,000,000. Scranton incurred P2,598,000 in research expenses in 2022. d. Because of recent events and increasing competition, Scranton estimated that the remaining useful life of the patent purchased on January 1, 2021, is only 5 years from January 1, 2022. C. 18. How much is the carrying amount of the patent on December 31, 2022? 19. How much is the carrying amount of the franchise on December 31, 2022? 20. Based on the aforementioned information, how much is the total expense to be recognized in Scranton's profit or loss statement for the year ended December 31, 2022