Question: Alta Co . spent $ 4 0 0 , 0 0 0 during the current year developing a new idea for a product that was

Alta Co. spent $400,000 during the current year developing a new idea for a product that was patented during the year. The legal
cost of applying for a patent license was $40,000. Also, $50,000 was spent to successfully defend the rights of the patent against
a competitor. The patent has a life of 20 years. What amount should Alta capitalize related to the patent?
A. $40,000
B. $50,000
C. $90,000
D. $490,000
Alta Co. spent $400,000 during the current year developing a new

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