On January 1, 20x1, T Co. purchase a patent from B Inc. for P500,000. Blue has held this patent for 5 years. T estimates that the patent has a remaining useful life of eight years. How much is the patent amortization in 20x1? Your answer

On January 1, 20x1, T Co. purchase a patent from B Inc. for P500,000. Blue has held this patent for 5 years. T estimates that the patent has a remaining useful life of eight years. How much is the patent amortization in 20x1? Your answer

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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Question

Answer the following problems. DO NOT put any commas or peso (P) signs on your answers. ROUND-UP
all answers to the NEAREST PESO.
On January 1, 20x1, T Co. purchase a patent from B Inc. for P500,000. Blue has
held this patent for 5 years. T estimates that the patent has a remaining useful life
of eight years. How much is the patent amortization in 20x1?
Your answer
On January 1, 20x1, T Co. purchase a patent from B Inc. for P500,000. Blue has
held this patent for 5 years. T estimates that the patent has a remaining useful life
of eight years. On January 1, 20x3, T Co. purchase a competitive patent from G
Corp. for P210,000 in order to protect the old patent. The competitive patent has
a remaining legal life and useful life of 20 years. How much is the total
amortization expense in 20x3?
Your answer

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