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  3. on january 1, 2019, olive company purchased a pate

On January 1, 2019, Olive Company purchased a patent from the inventor, who asked P220,000...

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Accounting

On January 1, 2019, Olive Company purchased a patent from the inventor, who asked P220,000 for it. Olive paid for the patent as follows: cash, P80,000; issuance of 2,000 shares of its own ordinary shares, par P10 (market value, P20 per share); and a note payable due at the end of three years, face amount, P100,000, noninterest-bearing. The current interest rate for this type of financing is 12 percent. Olive Company should record the cost of the patent at

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