Reference no: EM132994226
Question - 456 Co developed a trademark to distinguish its products from those of its competitors. The following were incurred in relation to the development:
Marketing research in determining consumer preferences 400,000
Registration fee with Intellectual Property Office 50,000
Design cost of trademark 1,500,000
Advertising for trademark recognition 200,000
Other legal fees for trademark registration 150,000
1. What amount should be capitalized as cost of intangible asset?
a. 1,700,000
b. 1,900,000
c. 2,100,000
d. 2,300,000
On January 1, 2021, 888 Company had capitalized cost of P10,000,000 for a new computer software product with an economic life of 4 years. Sales for 2021 for the software product amounted to P4,000,000. The total sales of the software over its economic life are expected to be P20,000,000. However, the pattern of the future sales from the computer software cannot be determined reliably.
2. Pila should record amortization of computer software in 2021
a. 0
b. 2,000,000
c. 2,500,000
d. 5,000,000