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During the year, a company purchased a patent for $550,000 from another company that will extend the battery life of their main product sold. Additionally,

During the year, a company purchased a patent for $550,000 from another company that will extend the battery life of their main product sold. Additionally, the company spent $115,000 this year to internally develop a separate invention that they plan to patent once its complete. Which of the following statements is true?

$675,000 should be expensed as research and development

$550,000 should be expensed as research and development

$115,000 can be capitalized as a patent

$550,000 can be capitalized as patents

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