Cost of a Patent Befort Company filed for a patent on a new type of machine. The application costs totaled $14,000. R&D costs incurred to create the machine were $85,000. In the year in which the company filed for and received the patent, it spent $20,000 in the successful defense of a patent infringement suit Required 1. At what amount should the company capitalize the patent? 2. Factors used to determine the economic life of a patent include: Changes in demand for the product. Competition The legal life of 20 years. All of the choices are correct. Cost of a Trade name On January 11, 2016, Hughes Company applied for a trade name. Legal costs associated with the application were $20,000. In January 2017, the company incurred $9,000 of legal fees in a successful defense of its trade name. The trade name was not impaired in 2016 and 2017 Required 1. Compute the ending carrying value of the trade name for 2016 and 2017. 2016: $ 2017: $ 2. A trade name is: Amortized when its life is considered finite. Not generally amortized because it is renewable indefinitely as long as the trade name is continuously used Reviewed for impairment annually. All of the choices are correct