[The following information applies to the questions displayed below] Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company mad During your year-end review of the accounts related to intangibles, you discover that the company has capitaliz costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized 2. How much should Satellite Systems report as research and development expense in the income statement