On January 1, 2017, J-hope Company incurred a 1,800,500 cost to develop a product design of...

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On January 1, 2017, J-hope Company incurred a 1,800,500 cost to develop a product design of the patent. During the year, Development costs incurred after technological viability are 1,200,300 and additional legal fees and other costs associated with registration of the patent are 385,800. During 2019, the entity paid 1,000,000 for legal fees in a successful defense of the patent. The patent's legal life is 10 years and the useful life of 12 years. How much is the carrying amount of the patent on Dec 31, 2020? 2. On January 1, 2020 Rabiya Company signed an assignment to operate as a franchise. Initial franchise fee 4,800,000 Direct cost incidental to the franchise 150,000 Annual Payment at the beginning of each year for 6 periods 800,000 Effective rate 15% Franchise term 6 years Estimated useful life 8 years The entity used 2 decimal places for the PV Factor. What is the franchise cost on Dec 31, 2021? On January 1, 2017, J-hope Company incurred a 1,800,500 cost to develop a product design of the patent. During the year, Development costs incurred after technological viability are 1,200,300 and additional legal fees and other costs associated with registration of the patent are 385,800. During 2019, the entity paid 1,000,000 for legal fees in a successful defense of the patent. The patent's legal life is 10 years and the useful life of 12 years. How much is the carrying amount of the patent on Dec 31, 2020? 2. On January 1, 2020 Rabiya Company signed an assignment to operate as a franchise. Initial franchise fee 4,800,000 Direct cost incidental to the franchise 150,000 Annual Payment at the beginning of each year for 6 periods 800,000 Effective rate 15% Franchise term 6 years Estimated useful life 8 years The entity used 2 decimal places for the PV Factor. What is the franchise cost on Dec 31, 2021?

Answer rating: 100% (QA)

1 To calculate the carrying amount of the patent on December 31 2020 we need to consider the various costs and the useful life of the patent a Develop... View the full answer