Refer to the information in BE 10–6. Now assume that instead of purchasing the patent, Advanced Technologies spent $1,200,000 to develop the patent internally, consisting of personnel ($800,000), equipment ($300,000), and materials ($100,000). All additional costs were incurred for the same amount. What is the recorded cost of the patent?

Data from in BE 10-6

On March 17, Advanced Technologies purchased a patent related to laser surgery techniques. The purchase price  of the patent is $1,200,000. The patent is expected to benefit the company for the next five years. The company  had the following additional costs: $20,000 in legal fees associated with the purchase and filing of the patent,  $35,000 to advertise its new laser surgery techniques, and $45,000 to train employees. None of these additional  costs were included in the purchase price or paid to the seller. What is the recorded cost of the patent?