SANTOS Company presented the following items related to its intangible assets for 2019: A patent was purchased
Question:
SANTOS Company presented the following items related to its intangible assets for 2019:
A patent was purchased from Alan Company for P4,000,000 on January 2, 2018. SANTOS Company estimated that the remaining useful life of the patent is 10 years. On January 1, 2019, because of recent events in the industry, the remaining useful life of the said patent was revised to 5 years at this date.
During 2019, a franchise was purchased from Ericia Company for P960,000. In addition, 5% of the revenue from the franchise must be paid to Ericia Company. Revenue from the franchise for 2019 was P5,000,000. SANTOS Company estimates the useful life of the franchise to be 10 years and take full year's amortization in the year of purchase.
SANTOS Company incurred research and development costs of P866,000 in 2019.
Find the ff.
Amortization of patent in 2019
Carrying amount of patent as of December 31, 2019
Total amount charged against income in 2019
carrying value of intangible assets as of December 31, 2020