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If a company buys a patent on an article but does not manufacture the article, what should the cost of the patent be? Capitalized and

If a company buys a patent on an article but does not manufacture the article, what should the cost of the patent be?

  1. Capitalized and written off over its life
  2. Treated as a current business expense
  3. Entered in the notes receivable ledger
  4. Credited to capital surplus

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