Smart Company incurred the following costs in 2021, in relation to developing a machine that will be used in manufacturing a product. Professional fees paid to consultants to conduct market study-----P 250,000 Fees paid to engineers and experts for initial research-- 150,000 Cost of equipment used for research. The equipment will be used for other research projects. The useful life of the equipment is 5 years----P300,000 Legal fees to obtain patent---P100,000 Licensing fees paid to the patent office --P 25,000 Legal costs paid to defend patent against infringement suit --P 47,000 What is the cost of patent?
Smart Company incurred the following costs in 2021, in relation to developing a machine that will be used in manufacturing a product. Professional fees paid to consultants to conduct market study-----P 250,000 Fees paid to engineers and experts for initial research-- 150,000 Cost of equipment used for research. The equipment will be used for other research projects. The useful life of the equipment is 5 years----P300,000 Legal fees to obtain patent---P100,000 Licensing fees paid to the patent office --P 25,000 Legal costs paid to defend patent against infringement suit --P 47,000 What is the cost of patent?
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 7MC
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Transcribed Image Text:. Smart Company incurred the following costs in 2021, in relation to developing a machine that will
be used in manufacturing a product.
Professional fees paid to consultants to conduct market study-----P 250,000
Fees paid to engineers and experts for initial research-- 150,000
Cost of equipment used for research. The equipment will be used for other research projects. The
useful life of the equipment is 5 years----P300,000
Legal fees to obtain patent---P100,000
Licensing fees paid to the patent office --P 25,000
Legal costs paid to defend patent against infringement suit --P 47,000
What is the cost of patent?
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