Intelligencia Inc. was incorporated as a research and development company in the biotechnology industry. The company incurred the following costs relating to various intangible assets:

1. During the year, the company completed work on a research project. The research work had cost \($450,000\).

2. The company filed a patent related to the research work. Filing costs amounted to \($30,000\).

3. Shortly after receiving the patent, it was challenged in court by another biotechnology company. Intelligencia won the case, protecting its patent, but incurred legal fees of \($200,000\).

4. The company purchased a patent from another biotechnology company for \($700,000\). Unfortunately, this patent was also challenged in court and Intelligencia Jost the case, incurring legal fees of \($175,000.
Do\) you think the above costs should be capitalized to the balance sheet as an intangible asset or expensed on the income statement? Why or why not?