Boston Company acquired a patent right on July 1, 2018 for P1,250,000. The asset has a remaining legal life of 10 years but due to the rapidly changing technology, management estimates a useful life...

Boston Company acquired a patent right on July 1, 2018 for P1,250,000. The asset has a remaining legal life of 10 years but due to the rapidly changing technology, management estimates a useful life of only five years. On January 1, 2020, management is uncertain that the process can actually be made economically feasible, and decides to write down the patent to an estimated market value of P750,000. Amortization will be taken over three years from that time.


1. How much is the amortization expense for the year 2018?
2. What is the patent carrying value at December 31, 2020?