Show the solution in good accounting form On January 1, 2018, Navy Company purchased Patent X from the inventor at a price ofP180,000. Patent X has a remaining life of 12 years. On March 1, the government granted toNavy Company Patent Y for which was incurred licensing and other related legal fees in securingthe patent rights for P340,000 to be amortized using its legal life.1.On January 1, 2022, the company successfully defended Patent X at a cost for legal services ofP24,000. No cost of legal action was recovered. On December 31, 2027, the company incurredP28,000 for legal services in an unsuccessful infringement suit for Patent Y against a competitor.No recovery of legal costs.Required:a) Entries to record the purchase of Patent X and granting of Patent Y.b) Entries to record the amortization of the two patents on December 31, 2018 up to 2021.c) Entry to record on January 1, 2022 for the payment of the cost for legal services forsuccessfully defending Patent X.d) Entry to record the amortization for the years 2022-2026.e) Entry to record on December 31, 2027 for the unsuccessful infringement suit for Patent Yagainst a competitor.f) Entry to record the amortization on December 31, 2028.g) What will be the carrying values of Patent X and Patent Y on December 31, 2028?

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Description: Show the solution in good accounting form On January 1, 2018, Navy Company purchased Patent X from the inventor at a price ofP180,000. Patent X has a remaining life of 12 years. On March 1, the government granted toNavy Company Patent Y for which was

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Answered: ent rights for P340,000 to be amor ary…

Business

Accounting

ent rights for P340,000 to be amor ary 1, 2022, the company success D. No cost of legal action was recov

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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