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Question 10 (1 point) In its current fiscal year, Guitar Hero Inc. ('GHI') spent $35,000 in marketing research with loyal customers to establish design parameters
Question 10 (1 point) In its current fiscal year, Guitar Hero Inc. ('GHI') spent $35,000 in marketing research with loyal customers to establish design parameters for a new game technology platform ('F.R.E.D.) and its first interactive game it named 'Mercury! IN the following 7 months, it spent an additional $400,000 in researching & developing the digital technology, including exploring alternatives - some of which were technically feasible and some were not. The most technically sound game alternative was tested in customer focus groups (cost: $20,000) before the marketing division created a feasible business case for the new game. It paid $38,000 in lawyers' fees and registration costs to obtain a Canadian patent. It also spent $26,000 this year with the same lawyers successfully prosecuting a competitor (RockBand Corp.) in a lawsuit for infringing this patent. What amount should GHI capitalize in respect of this intangible asset
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