On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the patent is 8 years.  During the year 2021, the company determined that the economic life of the patent is only 6 years from the date of acquisition.  1.)How much is the amortization expense for year 2021? 2.)What is the carrying value of the patent at December 31, 2021?

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter11: Long-term Assets
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Problem 6EA: Calico Inc. purchased a patent on a new drug. The patent cost $21,000. The patent has a life of...
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On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the patent is 8 years.  During the year 2021, the company determined that the economic life of the patent is only 6 years from the date of acquisition. 

1.)How much is the amortization expense for year 2021?

2.)What is the carrying value of the patent at December 31, 2021?

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