Arya Stark Company, purchased from Joffrey Ltd, a patent to prepare the invisible cloak for P4,000,000...

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Arya Stark Company, purchased from Joffrey Ltd, a patent to prepare the invisible cloak for P4,000,000 on January 2, 2021, with a useful life estimated to last 10 years. The Company's Intangible Asset Accountant, Mr. Khal Drogo, entered this in the Company's books at P4,000,000 as well. At the beginning of 2023, the Company purchased a franchise right on making the "Petrifying Potion from Sandor Enterprises. According to its corporate fortune teller "Petyr, there is a big market of Petrifying Potion in New York that would yield P5,000,000 in revenues for the Company in 2023. The Company's franchise agreement which is renewable every ten years, further states that they need to pay 'nonrefundable fees' composed of an initial franchise fee of P960,000, plus continuing franchise fee equivalent to 5% of predicted annual revenues. Hence, the Company paid the necessary fees to acquire the franchise. Actual revenue level for 2023 was half of what was predicted. Their accountant suggested an impairment test. The Company incurred R&D amounting to P866,000 in 2023. According to the experts' advice, these costs will be recouped by 2023. The company revised the remaining life of the patent purchased on January 2,2021, due to obsolescence of the invisible cloak industry, to 5 years from January 1, 2023. Determine the following as a result of your audit: 1. How much is the amortization of patent in 2023? 2. How much is the amortization of franchise in 2023? 3. How much is the carrying amount of patent at the end of 2023? 4. How much is the amount of intangible assets - net at the end of 2023? Arya Stark Company, purchased from Joffrey Ltd, a patent to prepare the invisible cloak for P4,000,000 on January 2, 2021, with a useful life estimated to last 10 years. The Company's Intangible Asset Accountant, Mr. Khal Drogo, entered this in the Company's books at P4,000,000 as well. At the beginning of 2023, the Company purchased a franchise right on making the "Petrifying Potion from Sandor Enterprises. According to its corporate fortune teller "Petyr, there is a big market of Petrifying Potion in New York that would yield P5,000,000 in revenues for the Company in 2023. The Company's franchise agreement which is renewable every ten years, further states that they need to pay 'nonrefundable fees' composed of an initial franchise fee of P960,000, plus continuing franchise fee equivalent to 5% of predicted annual revenues. Hence, the Company paid the necessary fees to acquire the franchise. Actual revenue level for 2023 was half of what was predicted. Their accountant suggested an impairment test. The Company incurred R&D amounting to P866,000 in 2023. According to the experts' advice, these costs will be recouped by 2023. The company revised the remaining life of the patent purchased on January 2,2021, due to obsolescence of the invisible cloak industry, to 5 years from January 1, 2023. Determine the following as a result of your audit: 1. How much is the amortization of patent in 2023? 2. How much is the amortization of franchise in 2023? 3. How much is the carrying amount of patent at the end of 2023? 4. How much is the amount of intangible assets - net at the end of 2023?

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