Under U.S. GAAP, which of the following costs are capitalized as the asset value of an internally-developed patent?
A) research and development costs
B) legal costs for patent defense
C) both R&D and legal defense costs
D) No costs are capitalized for internally-developed patents.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, research and development costs are expensed as incurred, while legal costs for patent defense can be capitalized if they are successful in defending the patent.

Under US GAAP, Which of the Following Costs Are Capitalized as as the Asset