Stars Corporation incurred a P198,900 of research and development costs to develop a product for which a patent was granted on January 2, 2017. Legal fees and other costs associated with registration of the patent totaled P44,200. On January 2, 2020. Stars paid P62,400 for legal fees in a successful defense of the patent. The patent has useful economic life of 20 years. What amount should Stars record as amortization expense for 2020?
Stars Corporation incurred a P198,900 of research and development costs to develop a product for which a patent was granted on January 2, 2017. Legal fees and other costs associated with registration of the patent totaled P44,200. On January 2, 2020. Stars paid P62,400 for legal fees in a successful defense of the patent. The patent has useful economic life of 20 years. What amount should Stars record as amortization expense for 2020?
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:Stars Corporation incurred a P198,900 of research and development costs to develop a
product for which a patent was granted on January 2, 2017. Legal fees and other costs
associated with registration of the patent totaled P44,200. On January 2, 2020, Stars paid
P62,400 for legal fees in a successful defense of the patent. The patent has useful economic
life of 20 years. What amount should Stars record as amortization expense for 2020?
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