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A company purchases a patent for $75,000, incurs $25,000 of associated research and development costs and $20,000 legal fees to defend the patent in court.

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A company purchases a patent for $75,000, incurs $25,000 of associated research and development costs and $20,000 legal fees to defend the patent in court. The life of the patent is 20 years. What is the capitalization of the patent? $75,000 $100,000 $120,000 $80,000 $95,000

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