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On July 1, 2017, Polar Electronics, a manufacturer of microprocessors, acquired a patent for P425,000. The patent has a useful life of 10years but a legal life of 20 years. The policy f the company is to amortized its intangible assets using the straight line method to the nearest full month. On January 10, 2018 the company was engaged in a lawsuit relating to this patent but successfully defended it against it competitor with a cost of P63,750
Problem 1: Carrying value of the patent on December 31, 2018
Problem 2: Amortization expense in 2020
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