Answered step by step
Verified Expert Solution
Question
1 Approved Answer
SY-KOH Company incurred P425,500 of research and development cost to develop a product for which a patent was granted on April 30, 2016. Legal fees
SY-KOH Company incurred P425,500 of research and development cost to develop a product for which a patent was granted on April 30, 2016. Legal fees and other costs associated with the registration of the patent totalled P68,800, legal fees in successfully defending amounted to 276,250. The estimated useful life of the patent is equal to its legal life. During 2019, SY-KOH determined that the economic benefits of the patent would not last longer than 8 years from the date of acquisition. Determine: a. How much is the amortization for the year ended, December 31, 2020? b. How much is the accumulated amortization as of December 31, 2020? c. What is the carrying value of the patent as of December 31, 2020? d. Supposing the product to which the patent is based was permanently withdrawn from sale under governmental order on December 31, 2021, how much should be recognized as a decrease in income in the income statement
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started