7

legal cost of filling patent 280,700

fees paid to goverment patent office 42,900
Drawings required by the patent offic 18,600
patent cost 342,200
legal life 5
ammortization 68440

patent cost 342,200

ammortization 68440
patent, year end 273,760

9
patent cost 8,000,000 Value in use
patent life 10 1,230,000
800000 4.16
5116800

patent cost 8,000,000

amortization 2400000 (800,000x3) accumulated amortization during 3
carrying amount 5,600,000 during dec 31 2021

carrying amount 5,600,000

recoverable amount 5116800
impairment loss 483,200
 8 patent cost 2,000,000

amortization
patent cost 2,000,000
divided by 5
multiply by 1 400000
carrying amount dec 31 2019 1,600,000

carrying amount dec 31 2019 1,600,000

useful life 4
amortization 1 400000
carrying amount dec 31 2020 1,200,000
The new patent has a legal and useful life of 8 years. 8
amortization expense for 2021 150000

10 annual payment 350,000

Value in use PV of OA 3.99
present value of note 1396500
paid in cash 195,000
francise cost jan 1 1,591,500
useful life 5
amortization 318300
accumulated amortization during 3 years
francise cost jan 1 1,591,500
amortization 318,300
francise cost dec 31 1,273,200