Reference no: EM132944067
Questions -
Q1. Dragon Fruit Trading spent P1,440,000 in acquiring a patent on January 3, 2012. Due to the competitive nature of the product, the patent was estimated to have a useful life of 10 years. At the beginning of 2016, the company paid P180,000 for legal fees in a successful defense of the patent. On July 1, 2020, a competitor obtained rights to a patent which made Dragon Fruit's patent obsolete. How much is the loss from the patent obsolescence?
a. P216,000
b. P243,000
c. P261,000
d. P396,000
e. None of the above
Q2. On January 1, 2016, Guava Co. bought a patent for P270,000. Amortization is being made over its remaining life of 10 years expiring on January 1, 2026. During 2020, Guava Co. estimated that the economic life of the patent will be 7 years from the date of acquisition. What amount should Guava Co. report as patent net of accumulated amortization in its December 31, 2020 balance sheet?
a. P1,600,000
b. P108,000
c. P54,000
d. P23,143
e. None of the above
Q3. On January 3, 2015, the Pomelo Company spent P480,000 to apply for and obtain a patent on a newly developed product. The patent had an estimated useful life of 10 years. During 2017, the company spent P90,000 in successfully prosecuting an attempted infringement of the patent. In the first week of 2020, the company incurred additional costs of P200, 000 relevant to the patent. It is expected that future economic benefits will flow to the enterprise as a result of this expenditure through cost savings and the asset's use is estimated to be extended by additional 5 years. How much is the patent amortization for the year 2020?
a. P44,000
b. P51,500
c. P103,000
d. P130,000
e. None of the above
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What the total issue price of the bonds
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What is the balance of the checking account on January
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Prepare journal entry to record the assignment
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How much is the loss from the patent obsolescence
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What is the entry in the statement of comprehensive income
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