Question 12 Not yet answered Marked out of 1.00 1' Flag question Jupiter, Inc. has the ff. information regarding their intangible assets. 1. Jupiter spent P1,500,000 of experimental and development costs in its laboratory to develop a patent which was granted on January 2,2020. Legal fees and other costs associated with the registration of the patent totaled P640000. 2. Jupiter purchased a trademark from ABC Co. for P2,000,000 on July 1, 2019. The trademark was successfully defended for a total cost of P600,000, which were paid on July 1, 2019. The legal life of the trademark is 10 years. The trademark was reported byJupiter at 2,000,000 on the December 31, 2019 on the nancial statements. The trademark is renewable every 10 years without limit to number of renewals. At the end of 2020, the estimated recoverable amount of the trademark is 1,700,000. 3. Jupiter signed an agreement on January 1, 2020, to operate as a franchise of "| Love Lemon" for an initial franchise fee of P4,200,000. Of this amount, P200000 was paid when the agreement was signed and the balance is payable in 5 annual installments of P800000 each, beginning January 2, 2020. The downpayment is nonrefundable and no future services are required of the franchisor. The implicit rate for a loan of this type is 12%. The agreement provides that 5% of the revenues of the franchise must be paid to the franchisor annually. Jupiter's revenues from the franchise for 2020 was P25,000,000. Jupiter estimates that the useful life of the franchise is 10 years. The carrying amount of the franchise on December 31, 2020 should be: 0 a. 3,730,000 0 113,086,892 0 c. 2,775,439 0 d. 906,723