Wriglee, Inc. went to court this year and successfully defended its patent from infringement by a competitor. The cost of this defense should be charged to
A) patents and amortized over the legal life of the patent.
B) legal fees and amortized over 5 years or less.
C) expenses of the period.
D) patents and amortized over the remaining useful life of the patent.

Question

Quizplus · Accepted Answer

The cost of defending a patent in court is capitalized to the patent's cost and then amortized over the remaining useful life of the patent. This approach reflects the benefit the defense expenditure provides over the patent's useful life.