On January 1, 2018, Laica Company purchased a patent from an original patentee for P2,400,000. The remaining life of the patent is 15 years but the useful life is only 12 years. On January 1, 2019, the entity paid P550,000 in successfully defending the patent in an infringement suit filed against the entity. On January 1, 2020, an entity acquired a competing patent for P1,500,000. The competing patent has a remaining life of 15 years but it is not used because it was intended to protect the original  patent.

Assume that the company is an SME. What is the carrying amount of the patent on December 31, 2020?

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ANSWER Solution Step 1 Intangible Assets I Example for Intangible assets are goodwil... View the full answer