Solution-Find the amortization expense

Find the amortization expense

Reference no: EM133119146

Question - The following transactions in relation to Kryptonite Company in 2021:

Purchased patent on January 1, 2021 for P2,400,000 and was expected to be a source of net cash inflows for at least 15 years.

Purchased a copyright on January 1, 2021 for P1,200,000 that has a remaining legal life of 40 years. An analysis of consumer habits and market trends provides evidence that the copyrighted material will generate net cash inflows for only 25 more years

Purchased a telecom license in January 5, 2021 for P18,000,000. The license has an initial term of 10 years. There is an established practice that grants a single renewal of telecom licenses at no additional cost provided that the holder adheres to all the requirements set forth in the license agreement. Management intends to comply with all the regulations as and when they are issued

Required - Find the amortization expense for 2021?

Reference no: EM133119146

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Find the amortization expense

Reference no: EM133119146

Reference no: EM133119146

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