when purchased zed either when purchased or created internally alized only when created internally written off directly to retained caring L. Answer 2. Answer 3 9 5 Z 8 10 11 12 13 14 Question Two (9 marks) A- (5 marks) On January 1, 2018, Honda Company applied for a patent, incurring legal costs of $300,000 and the estimated useful life was 10 years. On January 1, 2019. Honda incurred 554,000 of legal fees in a successful defense of its patent; the remaining useful life on January 1, 2019 was 9 years. Requirement: (a) Compute 2018 amortization expense, 12/31/2018 carrying value, 2019 amortization expense, and 12/31/2019 carrying value. (4 marks) b) At the beginning of 2020, based on new market research, Honda determines that the recoverable amount of the patent is $264.000. Compute the loss on impairment (if any) on 1/1/2020. (1 mark)