PROBLEM 2 (Patent, Capitalizable Cost) Orchid Company developed an equipment to be used in its manufacturing process. The following expenses were incurred in developing and patenting the equipment: Research and development Metal used in the construction of the equipment Blueprints used to design the equipment Wages for employees' work on the research, development & construction of the equipment Legal expenses to obtain patent Expenses of drawings required by patent office to be submitted with the patent application Fees paid to Patent Office 1,000,000 400,000 350,000 1,500,000 600,000 70,000 100,000 How much is the total capitalizable cost of the patent