AGT, CORPORATION

REQUIREMENT A

AGT, CORPORATION
Intangibles Section of Balance Sheet
December 31, 2021

Franchise from KaService,Inc., net of

accumulated amortization og P6,870 (schedule 1) ₱ 61,830.00
Patent, net of accumulated amortization of P2,050
(schedule 2) 14,350.00
Trademark, net of accumulated amortization of
P7,000 (schedule 3) 33,000.00
Total Intangibles ₱ 109,180.00

Schedule 1 Computation of Franchise from

KaService, Inc.

Cost of franchise at January 1, 2021

Down Payment ₱ 25,000.00
Present Value of installments 43,700.00
Initial amount capitalized 68,700.00
Amortization of franchise for 2021
(P68,700 / 10 years) - 6,870.00
Franchise balance, December 31, 2021 ₱ 61,830.00

Schedule 2 Computation of Patent

Capitalized cost of patent at January 2, 2021 - legal

fees and other costs associated with registration ₱ 16,400.00
Amortization of patent for 2006 (P16,400 / 8 years) - 2,050.00
Patent balance, December 31, 2021 ₱ 14,350.00

Schedule 3
Computation of Trademark
Accumulated
Cost Amortization
Cost of trademark at July 1, 2018 ₱40,000.00
Amortization through December 31, 2021
(40,000 / 20 years = P2,000 x 3.5 years) ₱ 7,000.00
Balance, December 31, 2021 40,000.00 ₱ 7,000.00
Deduct accumulated amortization - 7,000.00
Trademark balance, December 31, 2021 ₱33,000.00
REQUIREMENT B
AGT, CORPORATION
Expenses Resulting from Intangibles Transactions
For the Year Ended December 31, 2021

Franchise from KaService,Inc.

Amortization of franchise (schedule 1) ₱ 6,870.00
Franchi8se fee on revenues from operations
(P900,000 x 5%) 45,000.00
Imputed interest expense on unpaid balance of
initial franchise fee (P43,700 x 14%) 6,118.00
57,988.00
Amortization of patent ( schedule 2) 2,050.00
Litigation expense - Trademark 10,000.00
Amortization of trademark ( schedule 3) 2,000.00
Total Expenses ₱ 72,038.00