On January 1, 2022, Proton, Inc. purchased a patent giving it exclusive rights to manufacture a new type of synthetic clothing for P240,000. While the patent had a remaining legal life of 15 years at the time of purchase, Proton expects the useful life to be only eight more years. In addition, Proton purchased equipment related to production of the new clothing for P140,000. The equipment has a physical life of 10 years but Proton plans to use the equipment only over the patent's service life and then sell it for an estimated P20,000. Proton uses straight-line for all long-term assets. The amount charged to expense in 2022 related to the patent and equipment should be: O P40,000. O P31,000. O P38,000. O P45,000.

On January 1, 2022, Proton, Inc. purchased a patent giving it exclusive rights to manufacture a new type of synthetic clothing for P240,000. While the patent had a remaining legal life of 15 years at the time of purchase, Proton expects the useful life to be only eight more years. In addition, Proton purchased equipment related to production of the new clothing for P140,000. The equipment has a physical life of 10 years but Proton plans to use the equipment only over the patent's service life and then sell it for an estimated P20,000. Proton uses straight-line for all long-term assets. The amount charged to expense in 2022 related to the patent and equipment should be: O P40,000. O P31,000. O P38,000. O P45,000.

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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