Satelite Systems modifed its model 22 satelite to incorporate a new communication device. The company made the following expenditures During your year-end review of the occounts related to intangibles, you discover that the company has capitalized all costs of the patent Management contends that the device represents an improvement of the existing communication system of the satelite and, therefore, should be capitalized. Required: 1. How much should Satelite Systems capitalize in the Potent account in the balance sheet