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New Co. received a patent on a new type of machine. The legal costs and the patent application costs totaled $180,000. R&D costs incurred to
New Co. received a patent on a new type of machine. The legal costs and the patent application costs totaled $180,000. R&D costs incurred to create the machine were $120000. In the year in which the company received the patent, $25,000 was spent in the successful defense of a patent infringement suit.
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What amount of patent costs, if any, should be capitalized as an intangible asset?
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