How much is the amortization of patent for the year 2021?Provide a detailed answer. 4. At December 31, 2020, Green company had three existing patents shown below:CostUseful lifeDate AcquiredFebruary 14, 2016January 3, 2019July 1, 2019P 150,0008 years10 years5 yearsPatent APatent B210,250Patent C72,000During 2021, the company had the following transactions and assessments:Due to the emnerging competition relating to the product being manufactured in Patent A, it isexpected that the right will be useful only in 2021 and 2022.Patent B is believe to be uniquely useful as long as the company retains the right to use it.On June 1, 2021, the company unsuccessfully attempted to defend its right to Patent C. Legal feesof P15,000 was incurred in this action. The asset was immediately derecognized in the accounts.The company's policy is to take full year amortization in the year of acquisition and no amortizationin the year of derecognition using straight-line method.

Given as, Data Date acquired Cost Useful life Patent A Feb 14, 2016 150,…

Answered: 210,250 10 year 72,000 5 years

Business

Accounting

210,250 10 year 72,000 5 years

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 13E

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Question

How much is the amortization of patent for the year 2021? Provide a detailed answer.

4. At December 31, 2020, Green company had three existing patents shown below:
Cost
Useful life
Date Acquired
February 14, 2016
January 3, 2019
July 1, 2019
P 150,000
8 years
10 years
5 years
Patent A
Patent B
210,250
Patent C
72,000
During 2021, the company had the following transactions and assessments:
Due to the emnerging competition relating to the product being manufactured in Patent A, it is
expected that the right will be useful only in 2021 and 2022.
Patent B is believe to be uniquely useful as long as the company retains the right to use it.
On June 1, 2021, the company unsuccessfully attempted to defend its right to Patent C. Legal fees
of P15,000 was incurred in this action. The asset was immediately derecognized in the accounts.
The company's policy is to take full year amortization in the year of acquisition and no amortization
in the year of derecognition using straight-line method.

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