15 Intangible assetsPhoebe Pharmaceuticals incurred the following expenditures:

i Research costs of $600 000 were incurred to discover a cure for the common cold.

ii Phoebe paid $170 000 in development costs before it knew if it was technically feasible to make it as a product available for sale.

iii Phoebe paid about $120 000 on development but was not able to reliably measure the expenditure.

iv Phoebe incurred $180 000 exactly in costs once it knew it would be able to produce and sell the drug for billions.

REQUIRED Determine the total cost of the patent and comment on the carrying amount the accountants would place on the patent compared to its potential market value.

LO7 i 15 Intangible assets Phoebe Pharmaceuticals incurred the following expenditures: Research costs of $600 000 were incurred to discover a cure for the common cold. ji Phoebe paid $170 000 in development costs before it knew if it was technically feasible to make it as a product available for sale. iii Phoebe paid about $120000 on development but was not able to reliably measure the expenditure. iv Phoebe incurred $180 000 exactly in costs once it knew it would be able to produce and sell the drug for billions. REQUIRED Determine the total cost of the patent and comment on the carrying amount the accountants would place on the patent compared to its potential market value