How much is the loss on patent obsolescence recognized

Reference no: EM132700774

On January 3, 2012, Cassado 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. At the beginning of 2016, the company spent P90,000 in successfully prosecuting an attempted infringement of the patent. At the beginning of 2017, the company incurred additional costs of P200,000. 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. On July 1, 2020, a competitor obtained rights to a patent which made the company's patents obsolete.

Question 1: How much is the patent amortization for the year 2016?

Question 2: What is the patent amortization for the year 2017?

Question 3: How much is the loss on patent obsolescence recognized in the year 2020?

Reference no: EM132700774

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