During 2017, Summer Company spent P500,000 for the research and development of its patent. On January 1, 2018, the company paid P120,000 to apply for and obtain right to the patent. The useful life of the patent is 10 years.
During 2017, Summer Company spent P500,000 for the research and development of its patent. On January 1, 2018, the company paid P120,000 to apply for and obtain right to the patent. The useful life of the patent is 10 years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2017, Summer Company spent P500,000 for the research and development of its patent. On January 1, 2018, the company paid P120,000 to apply for and obtain right to the patent. The useful life of the patent is 10 years.
On January 1, 2019, Summer Company purchased a new patent for P1,200,000 which is expected to prolong the life of the original patent by six years. On December 31, 2020, a competitor obtained rights to a patent that rendered Summer Company's patent obsolete.
Required: Prepare all entries relative to the patent from 2017 through 2020.
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