Sony Inc. was organized in 2019. Its accounting records include only one account for all intangible assets. The following is a summary of the debit entries that have been recorded and posted during 2019 and 2020:

Intangible Assets

July 1,2019 8-year franchise; expires June 30, 2027 P126,000

October 1,2019 Advance payment on leasehold (tem of lease is 2 years) 84,000

December 31,2019 Net loss for 2019 including incorporation fee, P3,000, and related legal fees of organizing, P15,000 (all fees incurred in 2019) 48,000

January 2,2020 Acquired patent (10-year life) 222,000

March 1,2020 Cost of developing a secret formula 225,000

April 1,2020 Goodwill purchased 835,200

July 1,2020 Legal fee for successful defense of patent purchased above 37,950

October 1,2020 Research and development costs 480,000

Required: Based on the result of your audit, determine the following: (Ignore Income Tax Implications)

1. Unamortized patent cost at December 31,2020

A. 199,800

B. 235,440

C. 222,000

D. 197,490

2. Unamortized franchise cost at December 31,2020

A. 110,250

B. 94,500

C. 102,375

D. 118,125