efense of the pat colete.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:2. JPIA Company spent P1, 920, 000 in acquiring a patent on January 3, 2016. Due to the competitive nature of
the product, the patent was estimated to have a useful life of 10 years. At the beginning of 2018, the company
paid P240, 000 for legal fees in a successful defense of the patent. On July 1, 2022, a competitor obtained
rights to a patent which made JPIA's patent obsolete.
How much is the loss from the patent obsolescence?
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