12-29 Exercises EXERCISES E12-1 Cost of a Patent Befort Company filed for a patent on a new type of machine. The application costs totaled LO 12.1 $12,000. R&D costs incurred to create the machine were $75,000. In the year in which the company filed for and 10 122 received the patent, it spent $20,000 in the successful defense of a patent infringement suit. LO 12.4 Required: 1. At what amount should the company capitalize the patent? 2. Next Level How would you determine the economic life of the patent Cost of a Patent On January 4, 2016, Franc Company purchased for $27,000 a patent that had been filed 8 years E12-2