Two years ago, Pesowski Corp. purchased a patent for $5 million that allows the company to produce

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Two years ago, Pesowski Corp. purchased a patent for $5 million that allows the company to produce and sell a special video game controller. During the year, the company determined that Sucha Ltd. was producing and selling a similar game controller. Pesowski spent $100,000 on legal fees to successfully enforce its rights under the patent. How should Pesowski account for the legal fees and why?
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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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