Konsenxia Corporation expended ₱510,000 in research and development costs. These activities resulted to a new product called the Oido Organ. It was patented at additional legal and other costs of ₱54,000. The patent application was filed on October 1, 2020, and the patent was estimated to have a useful life of 10 years. On June 1, 2022, Konsenxia spent ₱28,440 to successfully prosecute a patent infringement. In addition, the patent’s estimated useful life was extended to 12 years from June 1, 2022. At thebeginning of 2024, Konsenxia determined that a competitor’s product would make Oido Organ obsolete and the patent worthless by December 31, 2025.Based on the foregoing information, calculate the patent amortization expense for each of the followingyears:1. 2020a. ₱5,400 b. ₱14,100 c. ₱1,350 d. ₱12,7502. 2021a. ₱2,700 b. ₱56,400 c. ₱5,400 d. ₱51,0003. 2022a. ₱5,820 b. ₱3,750 c. ₱2,188 d. ₱4,4384. 2023a. ₱3,750 b. ₱2,188 c. ₱6,120 d. ₱4,4385. 2024a. ₱19,531 b. ₱39,062 c. ₱3,750 d. ₱31,875 Konsenxia Corporation expended P510,000 in research and development costs. These activities resultedto a new product called the Oido Organ. It was patented at additional legal and other costs of P54,000.The patent application was filed on October 1, 2020, and the patent was estimated to have a useful lifeof 10 years. On June 1, 2022, Konsenxia spent P28,440 to successfully prosecute a patent infringement.In addition, the patent's estimated useful life was extended to 12 years from June 1, 2022. At thebeginning of 2024, Konsenxia determined that a competitor's product would make Oido Organ obsoleteand the patent worthless by December 31, 2025.Based on the foregoing information, calculate the patent amortization expense for each of the followingyears:1. 2020a. P5,400b. P14,100c. P1,350d. P12,7502. 2021a. P2,700b. P56,400c. P5,400d. P51,0003. 2022а. Р5,820b. P3,750с. Р2,188d. P4,4384. 2023a. P3,750b. P2,188c. P6,120d. P4,4385. 2024a. P19,531b. P39,062c. P3,750d. P31,875

Amortization:- It means dividing the cost of an asset over its useful life and distribute the cost…

Answered: Konsenxia Corporation expended ₱510,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Konsenxia Corporation expended ₱510,000 in research and development costs. These activities resulted to a new product called the Oido Organ. It was patented at additional legal and other costs of ₱54,000. The patent application was filed on October 1, 2020, and the patent was estimated to have a useful life of 10 years. On June 1, 2022, Konsenxia spent ₱28,440 to successfully prosecute a patent infringement. In addition, the patent’s estimated useful life was extended to 12 years from June 1, 2022. At the
beginning of 2024, Konsenxia determined that a competitor’s product would make Oido Organ obsolete and the patent worthless by December 31, 2025.

Based on the foregoing information, calculate the patent amortization expense for each of the following
years:
1. 2020
a. ₱5,400 b. ₱14,100 c. ₱1,350 d. ₱12,750
2. 2021
a. ₱2,700 b. ₱56,400 c. ₱5,400 d. ₱51,000
3. 2022
a. ₱5,820 b. ₱3,750 c. ₱2,188 d. ₱4,438
4. 2023
a. ₱3,750 b. ₱2,188 c. ₱6,120 d. ₱4,438
5. 2024
a. ₱19,531 b. ₱39,062 c. ₱3,750 d. ₱31,875

Konsenxia Corporation expended P510,000 in research and development costs. These activities resulted
to a new product called the Oido Organ. It was patented at additional legal and other costs of P54,000.
The patent application was filed on October 1, 2020, and the patent was estimated to have a useful life
of 10 years. On June 1, 2022, Konsenxia spent P28,440 to successfully prosecute a patent infringement.
In addition, the patent's estimated useful life was extended to 12 years from June 1, 2022. At the
beginning of 2024, Konsenxia determined that a competitor's product would make Oido Organ obsolete
and the patent worthless by December 31, 2025.
Based on the foregoing information, calculate the patent amortization expense for each of the following
years:
1. 2020
a. P5,400
b. P14,100
c. P1,350
d. P12,750
2. 2021
a. P2,700
b. P56,400
c. P5,400
d. P51,000
3. 2022
а. Р5,820
b. P3,750
с. Р2,188
d. P4,438
4. 2023
a. P3,750
b. P2,188
c. P6,120
d. P4,438
5. 2024
a. P19,531
b. P39,062
c. P3,750
d. P31,875

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