Hunt Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2013 the company expends $183,000 on a research project, but by the end of 2013 it is impossible to determine whether any benefit will be derived from it.

Instructions
(a) What account should be charged for the $183,000, and how should it be shown in the financial statements?
(b) The project is completed in 2014, and a successful patent is obtained. The R&D costs to complete the project are $211,000. The administrative and legal expenses incurred in obtaining the patent in 2014 total $12,000. The patent has an expected useful life of 6 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2014.
(c) Additional engineering and consulting costs incurred in 2015 required to advance the design of a product to the manufacturing stage total $82,000. These costs enhance the design of the product considerably. Discuss the proper accounting treatment for this cost.
(d) In 2016, the company successfully defends the patent in extended litigation at a cost of $18,600. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2016.