On January 1, 2020, Cecilia Company purchased a patent from an original patentee for P2,400,000. The remaininglegal life of the patent is 15 years but the useful life is only 12 years. On January 1, 2021, the entity paid P550,000 insuccessfully defending the patent in an infringement suit filed against the entity. On January 1, 2022, the entityacquired a competing patent for P1,500,000. The competing patent has a remaining legal life of 15 years but it is notto be used because it was intended to protect the original patent. What is the carrying amount of the patent onDecember 31, 2022?А. 3,150,000B. 3,600,000С. 3,200,000D. 3,500,000

If a competing patent is acquired to protect an original patent. The cost of the new patent and the…

legal life of the patent is 15 years but the useful life is successfully defending the patent in an infringement acquired a competing patent for P1,500,000. The comp to be used because it was intended to protect the on December 31, 2022? A. 3,150,000

legal life of the patent is 15 years but the useful life is successfully defending the patent in an infringement acquired a competing patent for P1,500,000. The comp to be used because it was intended to protect the on December 31, 2022? A. 3,150,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On January 1, 2020, Cecilia Company purchased a patent from an original patentee for P2,400,000. The remaining
legal life of the patent is 15 years but the useful life is only 12 years. On January 1, 2021, the entity paid P550,000 in
successfully defending the patent in an infringement suit filed against the entity. On January 1, 2022, the entity
acquired a competing patent for P1,500,000. The competing patent has a remaining legal life of 15 years but it is not
to be used because it was intended to protect the original patent. What is the carrying amount of the patent on
December 31, 2022?
А. 3,150,000
B. 3,600,000
С. 3,200,000
D. 3,500,000

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