2. ABC Enterprises Inc. developed a new machine for manufacturing baseballs. Because the machine is considered very valuable, the company had it patented. The following expenditures were incurred in developing and patenting the machine. (a) Purchases of special equipment to be used solely for the development of the new machine P182,000 (b) Research salaries and fringe benefits for engineers and scientists 17,100 (c) Cost of testing prototype 23,600 (d) Legal costs for filing for a patent. 12,700 (e) Fees paid to government patent office 2,500 (f) Drawings required by the patent office to be filed with patent application 4,700 ABC elected to amortize the patent over its useful life of 17 years. At the beginning of the second year, ABC Enterprises paid P24,000 to successfully defend the patent in an infringement suit. At the beginning of the fourth year, ABC determined that the remaining estimated useful life of the patent was five years. Determine the cost of the patent at the end of year 1.
2. ABC Enterprises Inc. developed a new machine for manufacturing baseballs. Because the machine is considered very valuable, the company had it patented. The following expenditures were incurred in developing and patenting the machine.
(a) Purchases of special equipment to be used solely for the development of the new machine P182,000
(b) Research salaries and
(c) Cost of testing prototype 23,600
(d) Legal costs for filing for a patent. 12,700
(e) Fees paid to government patent office 2,500
(f) Drawings required by the patent office to be filed with patent application 4,700
ABC elected to amortize the patent over its useful life of 17 years. At the beginning of the second year, ABC Enterprises paid P24,000 to successfully defend the patent in an infringement suit. At the beginning of the fourth year, ABC determined that the remaining estimated useful life of the patent was five years.
Determine the cost of the patent at the end of year 1.
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