An entity developed a patent at cost of P200,000 and spent P120,000 for the licensing

of the patent including legal fees and cost of models and drawings that accompany
the registration on January 1, 2021.

The patent will be useful for the entire legal life of 20 years.

On January 1, 2023, the entity paid P180,000 to attorneys for the services in connection
with a successful defense of the patent.

On January 1, 2024, the entity purchased a competing patent for P170,000 in order to
protect the original patent.

The competing patent has 18 years to run from the date of acquisition.

On December 31, 2024, the product covered by the patent was withdrawn from sale
under government order because of potential hazard in the product.

1/1/2021 R&D expense ( 200,000.00)

Cash ( 200,000.00)

Patent ( 120,000.00)
Cash ( 120,000.00)

12/31/2021 Amortization of patent ( 6,000.00)

Accumulated amortization
( 6,000.00)

12/31/2022 Amortization of patent ( 6,000.00)

Accumulated amortization
( 6,000.00)

1/1/2023 Legal expenses ( 180,000.00)

Cash ( 180,000.00)

12/31/2023 Amortization of patent ( 6,000.00)

Accumulated amortization
( 6,000.00)
An entity developed a patent at cost of P200,000 and spent P120,000 for the licensing
of the patent including legal fees and cost of models and drawings that accompany
the registration on January 1, 2021.

The patent will be useful for the entire legal life of 20 years.

On January 1, 2023, the entity paid P180,000 to attorneys for the services in connection
with a successful defense of the patent.

On January 1, 2024, the entity purchased a competing patent for P170,000 in order to
protect the original patent.

The competing patent has 18 years to run from the date of acquisition.

On December 31, 2024, the product covered by the patent was withdrawn from sale
under government order because of potential hazard in the product.

1/1/2024 Patent ( 170,000.00)

Cash ( 170,000.00)

12/31/2024 Amortization of patent ( 16,000.00)

Accumulated amortization
( 16,000.00)

Patent written off ( 256,000.00)

Accumulated amortization
( 34,000.00)
Patent ( 290,000.00)