Algorithm patent topic selection

Book value = original value of intangible assets-accumulated amortization-impairment reserve

Original value of intangible assets =2700+ 120=2820 (advertising fee has nothing to do with patent acquisition and is included in the period fee).

Cumulative amortization =2820/5=564 (amortization starts in the month when intangible assets are acquired)

The book value of the company brought into it =2820-564=2256.

Advertising expenses are included in sales expenses or management expenses as period expenses.