Classifying Intangible Costs

The following costs were incurred by Athletica Co. For each item, indicate the proper accounting treatment: (1) expense as incurred, (2) capitalize and assess for impairment, or (3) capitalize, amortize, and assess for impairment.

a. Start-up costs including legal fees and registration fees.	Answer123
b. Research and development cost.	Answer123
c. Goodwill recorded based upon a purchase of another company.	Answer123
d. Purchase of a patent.	Answer123
e. Costs to internally develop a patent.	Answer123
f. Purchased trademark with indefinite life.	Answer123

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