WHAT IS THE ALLOCATED AMOUNT FOR THE INTANGIBLE ASSET

The terms of the arrangement require the operator to: a. Construct a road-completing construction within two years b. Maintain and operate the road for three years c. Resurface the road when the original surface has deteriorated below a specified condition. The operator estimates that it will have to undertake the resurfacing at the end of year 4. d. The government grants the operator the right to collect toll fees from road users and in addition, guarantees a minimum amount of P100 and interest at a specified rate of 24.42% to reflect the timing of cash receipts. e. The contract ends in year 5. The operator makes the following estimates: Year Contract Cost Stand-alone selling price Construction Services 1 50 Forecast cost +20% 2 50 Forecast cost +20% Operation Services 3-5 20 N/A Road resurfacing 4 10 N/A Compute the allocated amount for the intangible asset