Cost of a Patent

Befort Company filed for a patent on a new type of machine. The application costs totaled $10,000. 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? $fill in the blank 1

2. Next Level Factors used to determine the economic life of a patent include: