On January 2, 2021, Dopey Enterprises, Inc. paid P35,200 in legal fees to successfully defend the patent against an infringement suit by Snow White Company. What is the carrying value of the patent in December 31, 2021?
On January 2, 2021, Dopey Enterprises, Inc. paid P35,200 in legal fees to successfully defend the patent against an infringement suit by Snow White Company. What is the carrying value of the patent in December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![On January 1, 2020, Dopey Enterprises, Inc. developed a new machine that reduces the time required
to insert the fortunes into their fortune cookies. Because the process is considered very valuable to the
fortune cookie industry, Dopey had the machine patented. The following expenses were incurred in
developing and patenting the machine:
Research and development laboratory expenses
P250,000
80,000
32,000
120,000
Metal used in construction of the machine
Blueprints used to design the machine
Legal expenses to obtain patent
Wages paid for the employees on the research, development and
the building of the machine; 60% of the time was spent in actual
building of the machine
Expense of drawing required by the patent office to be submitted with
the patent application
Fees paid to government patent office to process application
150,000
17,000
24,500
On January 2, 2021, Dopey Enterprises, Inc. paid P35,200 in legal fees to successfully defend the patent
against an infringement suit by Snow White Company. What is the carrying value of the patent in
December 31, 2021?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F925dba2e-5496-4bec-824d-e314c61db5bd%2F28e98699-b144-4045-bf93-1f89ced0f364%2F0kvm5m_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2020, Dopey Enterprises, Inc. developed a new machine that reduces the time required
to insert the fortunes into their fortune cookies. Because the process is considered very valuable to the
fortune cookie industry, Dopey had the machine patented. The following expenses were incurred in
developing and patenting the machine:
Research and development laboratory expenses
P250,000
80,000
32,000
120,000
Metal used in construction of the machine
Blueprints used to design the machine
Legal expenses to obtain patent
Wages paid for the employees on the research, development and
the building of the machine; 60% of the time was spent in actual
building of the machine
Expense of drawing required by the patent office to be submitted with
the patent application
Fees paid to government patent office to process application
150,000
17,000
24,500
On January 2, 2021, Dopey Enterprises, Inc. paid P35,200 in legal fees to successfully defend the patent
against an infringement suit by Snow White Company. What is the carrying value of the patent in
December 31, 2021?
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