The Las Vegas Inc. acquired several small companies at the end of 2018 and, based on the acquisitions, reported the following intangibles in its December 31, 2018 balance sheet: Patent P600,000 Copyright 1,200,000 Tradename 1,050,000 Computer software 300,000 Franchise 480,000 Goodwill 2,700,000 Additional information: a. The patent which had a remaining legal life of 15 years, was purchased from FAC for P600,000. The company estimates that the patent will be useful in generating the company cash flows over a ten-year period. The patent was carried in FAC's accounting records at a net book value of P800,000 when it sold the same to Las Vegas. b. The company was able to generate approximately P1.5M in 2019 from distribution of the copyright protected materials. Moreover, the company estimates that P3.5M will be further generated from the copyrighted materials. c. The company expects to use the tradename for the foreseeable future. d. The accountant knows that the computer software is used in the company's 240 sales offices. The company has replaced the software in its 100 offices in 2019 and expects to replace the software in 80 more offices in 2020 and the remainder in 2021. e. The franchise was purchased from JC Company. In addition, 5% of revenue from the franchise must be paid to JC. Revenue from the franchise for 2019 was P2.5M. Las Vegas Inc. estimates that the useful life of the franchise to be 10 years and takes a full years amortization in the year of purchase. f. The company incurred research and development cost in 2019 as follows: Materials P42,000 Equipment, 4-year useful life 100,000 Personnel 189,000 Indirect costs 102,000 The company estimates that these costs will be recouped by December 31, 2022. The materials and equipment purchased have no alternative use