Runway Corp. is a modern furniture manufacturer. Jim Castello, CFO of Runway Corp., has hired you as a consultant to the corporation. To ensure proper reporting of the fixed assets' balance on the financial statements, Jim has an issue for you to research as follows: During Year 1, Runway Corp. paid $5,000 to a lawyer for expenses related to obtaining a patent to be used in the production of a revolutionary new bean bag chair. Timothy knows that research and development costs are expensed immediately but with exceptions so he would like to know if this qualifies as a research and development expenditure that can be capitalized or expensed. Timothy has asked you to conduct research to determine whether the $5,000 lawyer fee is a research and development cost that is an exception to the rule and can be capitalized. Search the authoritative literature, researching to locate the proper reporting guidelines. Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Type the topic here. Correctly formatted FASB ASC topics are 3 digits. FASB ASC Some examples of correctly formatted FASB ASC responses are 205-10-05-1, 323- 740-S25-1, 260-10-60-1A, 260-10-55-99, and 115-60-35-128A.