The Befort Company filed for a patent on a new type of machine. The application costs totaled

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The Befort Company filed for a patent on a new type of machine. The application costs totaled $12,000. R&D costs incurred to create the machine were $75,000. In the year in which the company filed for and received the patent, it spent $20,000 in the successful defense of a patent infringement suit.

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1. At what amount should the company capitalize the patent?
2. How would you determine the economic life of the patent?

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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