On January 1, 20X1, Florida Company, a small-sized entity, acquired a trademark for a line of products in a separate acquisition from a competitor for P300,000. Florida expected to continue marketing the line of products using the trademark indefinitely. An analysis of (a) product life cycle studies, (b) market, competitive and environmental trends, and (c) brand extension opportunities provides evidence that the line of trademarked products may generate net cash inflows for the acquiring entity for an indefinite period. Because management is unable to establish reliably the useful life of the trademark, it comes up with a best estimate of 15 years.

In 20X4, a competitor unexpectedly revealed a technological breakthrough that is expected to result in a product, that when launched by the competitor, will extinguish demand for Florida's patented product-line. Demand for Florida's patented product-line is expected to remain strong until December 2025, when the competitor is expected to launch its new product.

On December 31, 20X4, Florida assessed the recoverable amount of the trademark at P50,000. Florida intends to continue manufacturing the patented products until December 31, 2025. Florida has a December 31 financial year-end.

Required

Prepare journal entries to record the information set out above in the accounting records of Florida from January 1, 20X1 to December 31, 20X4. Ignore income tax effects.