Crystal Company summarized the following transactions pertaining to patent: 2020 Dec 31 2021 Jan 1 2022...

 

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Crystal Company summarized the following transactions pertaining to patent: 2020 Dec 31 2021 Jan 1 2022 Jan 1 2023 Jan 1 Spent P250,000 for the research and development of the patent. Paid P60,000 to apply for and obtain right to the patent. The Useful life of the patent is 10 years. Purchased for P600,000 a new patent that is expected to prolong the life of the original patent by 6 years. A competitor obtained rights to a patent which rendered the entity's patent obsolete. Prepare the amortization schedule. Crystal Company summarized the following transactions pertaining to patent: 2020 Dec 31 2021 Jan 1 2022 Jan 1 2023 Jan 1 Spent P250,000 for the research and development of the patent. Paid P60,000 to apply for and obtain right to the patent. The Useful life of the patent is 10 years. Purchased for P600,000 a new patent that is expected to prolong the life of the original patent by 6 years. A competitor obtained rights to a patent which rendered the entity's patent obsolete. Prepare the amortization schedule.

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The cost of a patent should be amortized over its useful life In this case the useful life of the pa... View the full answer