PETRON Corporation acquired two patents, several items of equipment, and a parcel of land for a total of P1, 375,000. Appraisal values of the assets on the date of acquisition are as follows: Patent Y P 300,000 Patent Z 400,000 Equipment 197,000 Land 620,000 By acquiring the assets in a group, the company was able to get a favorable price. The acquisition took place on April 27, 2020. Patent Y has a 5-year remaining life and Patent Z, has a 12-year remaining life. Amortization of intangible assets is determined on a straight-line basis, computed in whole pesos to the nearest full month. In 2021, the company got involved in two lawsuits resulting in the successful defense of Patent Z but the unsuccessful defense of Patent Y. Total legal fees of P176,000 was incurred. Management estimates that approximately equal effort went into defending each patent. The established date of these settlements was March 7, 2021. No further transactions affecting the patents occurred through October 31, 2022. 

1. What is the allocated cost to the individual assets acquired? 

2. How much is the amortization of the patents on October 31, 2020? 

3. Prepare journal entries for the years 2021 and 2022.

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