Zurich Manufacturing Company acquired three patents in August 2019. The patents have different useful life as indicated in the following schedule: Remaining Useful Life 8 years 3 years 10 years Cost Patent A P125,000 Patent B 72,000 Patent C 256,250 Patent C is believed to be uniquely useful as long as the company retains the right to use it. On June 30, 2020, the company unsuccessfully attempted to defend Its right to Patent B. Legal fees of P17,500 were incurred in this action. The company's policy is to take full year amortization in the year of acquisition and no amortization in the year of derecognition using straight-line method. The company reports on a calendar-year basis. How much is the amortization of the patent for the year 2020?

Zurich Manufacturing Company acquired three patents in August 2019. The patents have different useful life as indicated in the following schedule: Remaining Useful Life 8 years 3 years 10 years Cost Patent A P125,000 Patent B 72,000 Patent C 256,250 Patent C is believed to be uniquely useful as long as the company retains the right to use it. On June 30, 2020, the company unsuccessfully attempted to defend Its right to Patent B. Legal fees of P17,500 were incurred in this action. The company's policy is to take full year amortization in the year of acquisition and no amortization in the year of derecognition using straight-line method. The company reports on a calendar-year basis. How much is the amortization of the patent for the year 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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