Cost of a Patent Befort Company filed for a patent on a new type of machine. The application costs totaled $11,000. 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 $15,000 in the successful defense of a patent infringement suit. Required: 1. At what amount should the company capitalize the patent? 2. Next Level 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