What is the amortization expense for the year

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Question - Sydney, Inc., a manufacturer of chocolate-coated mint candy acquired a patent on June 25, 2018 for P720,000. Management expects that the patent will be useful to the company for its remaining useful life of 10 years. On January 10, 2020, the company spent P120,000 in successfully defending the patent against a competitor. During 2021, management determines that the estimated remaining life of the patent should be reduced to only five years, including the current year. The company's policy is to amortize the cost of Intangible assets using straight-line method to the nearest month.

Required - What is the amortization expense for the year 2021?

Reference no: EM133188982

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