Stars Corporation incurred a P198,900 of research and development costs to develop a product for which a patent was granted on January 2, 2017. Legal fees and other costs associated with registration of the patent totaled P44,200. On January 2, 2020. Stars paid P62,400 for legal fees in a successful defense of the patent. The patent has useful economic life of 20 years. What amount should Stars record as amortization expense for 2020?

Stars Corporation incurred a P198,900 of research and development costs to develop a product for which a patent was granted on January 2, 2017. Legal fees and other costs associated with registration of the patent totaled P44,200. On January 2, 2020. Stars paid P62,400 for legal fees in a successful defense of the patent. The patent has useful economic life of 20 years. What amount should Stars record as amortization expense for 2020?

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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