1. The corporation purchased a patent on May 1, 2019 for P216,000. On this date, the patent has a remaining commercial life of eight(8) years. Early in Jan., 2020, P83,600 is paid to settle an infringement suit. How much is patent amortization expense in the 2019 income statement?

1. The corporation purchased a patent on May 1, 2019 for P216,000. On this date, the patent has a remaining commercial life of eight(8) years. Early in Jan., 2020, P83,600 is paid to settle an infringement suit. How much is patent amortization expense in the 2019 income statement?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Please help me to answer the requirements with supporting computation

1. How much is patent amortization expense in the 2019 income statement?

2. How much is the amortization expense for the 2020 income statement assuming the defense was successful?

3. How much is the amortization expense for the 2020 income statement assuming the defense was successful?

1. The corporation purchased a patent on May 1, 2019 for P216,000. On this date, the patent has a
remaining commercial life of eight(8) years. Early in Jan., 2020, P83,600 is paid to settle an infringement
suit. How much is patent amortization expense in the 2019 income statement?

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