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On January 1, 2016, Luke Company acquired a patent for P750,000 and began amortizing it...

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Accounting

On January 1, 2016, Luke Company acquired a patent for P750,000 and began amortizing it over its estimated useful life of 10 years. At December 31, 2019, a significant change in the business climate caused Luke to assess the recoverability of the carrying amount of the patent. Luke estimated that the discounted future net cash inflows from the patent would be P487,500 and that its fair value was P412,500. Accordingly, for the year ended December 31, 2019, Luke should recognize an impairment loss of

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