On January 1, 2017, Blood Chalice Company acquired both License and a Trademark in exchange for 1,000 shares of Blood Chalice, P100 par ordinary shares. The shares are selling for P125 per share on...

On January 1, 2017, Blood Chalice Company acquired both License and a Trademark in exchange for 1,000

shares of Blood Chalice, P100 par ordinary shares. The shares are selling for P125 per share on January 1,

2017. The trademark is worth thrice as much as the license. The license may be used for five years while the

trademark has a remaining useful life of 6 years. Blood Chalice intends to renew the trademark

continuously because the said trademark is expected to contribute to net cash flows indefinitely. How

much is the amortization expense for the year 2017?

A
.

21,875 B. 6,250 C. 23,958 D. 0