The answer is P28,125. The 1st bullet’s computation of amortization is only needed. The 2nd and 3rd bullet does not need to be amortized. Help me compute for the 1st bullet's amortization. At December 31, 2020, Green company had three existing patents shown below:Date AcquiredFebruary 14, 2016January 3, 2019July 1, 2019CostUseful lifeP 150,000210,25072,0008 years10 years5 yearsPatent APatent BPatent CDuring 2021, the company had the following transactions and assessments:Due to the emerging competition relating to the product being manufactured in Patent A, it is expectedthat the right will be useful only in 2021 and 2022.Patent B is believed 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 ofP15,000 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 yearof derecognition using straight-line method.How much is the amortization of patent for the year 2021?

As at Dec 31, 2020 Green Company has 3 existing patents. Patent A has been acquired on 14th Feb,…

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Business

Accounting

How much is the amortization of patent for the year 2021?

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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