Running Running Corporation incurred P298,350 of research and development cost to develop a product for which a patent was granted on January 2, 2016 and legal fees and other costs associated with registration of the patent totaled P195,000. On January 1, 2022, Running Running paid P90,000 legal fees for the litigation put up against the patent. The patent has a useful life of 12 years. Assume that Corporation failed in their attempt to defend the patent in their litigation proceedings, what total amount of expense should Running Running Corporation report in its 2022 profit or loss related to the patent?
Running Running Corporation incurred P298,350 of research and development cost to develop a product for which a patent was granted on January 2, 2016 and legal fees and other costs associated with registration of the patent totaled P195,000. On January 1, 2022, Running Running paid P90,000 legal fees for the litigation put up against the patent. The patent has a useful life of 12 years. Assume that Corporation failed in their attempt to defend the patent in their litigation proceedings, what total amount of expense should Running Running Corporation report in its 2022 profit or loss related to the patent?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Running Running Corporation incurred P298,350 of research and development cost to develop a product for which a patent was granted on January 2, 2016 and legal fees and other costs associated with registration of the patent totaled P195,000. On January 1, 2022, Running Running paid P90,000 legal fees for the litigation put up against the patent. The patent has a useful life of 12 years. Assume that Corporation failed in their attempt to defend the patent in their litigation proceedings, what total amount of expense should Running Running Corporation report in its 2022 profit or loss related to the patent?
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