6-1 (Amsterdam Enterprises) a. Special equipment P546,000 Research salaries 51,300 Costs of testing prototype 70,800 R & D Expense P668,100
b. Fees paid to Phil. Patent Office P 7,500 Drawings required by the patent office 14,100 Legal costs of filing patent 38,100 Patent cost, January 1, 2004 P 59,700 Less amortization of patent for years 2006 and 2007 (59,700/ 17) x 2 yrs. 7,024 Patent carrying value, December 31, 2007 P 52,676
c. Patent carrying value at December 31, 2008 59,700 x 14/17 P 49,165 Remaining estimated useful life at January 1, 2009 ÷ 5 Amortization expense for year 2009 P 9,833
6-2 (May Company) Patents Cost P192,000 Less accumulated amortization 36,000 + (156,000 ÷ 8) 55,500 P 136,500 License Cost (80 x 600 x 2/3) P 32,000 Less accumulated amortization (32,000/4) 8,000 24,000 Trademark Cost (80 x 600 x 1/3) P 16,000 Less accumulated amortization (16,000/4) 4,000 12,000 Goodwill (12M – 8M) 4,000,000 Total intangible assets P4,172,500
