If a company incurs legal costs in unsuccessfully defending its patent, these costs would be debited to
A)Legal Expense.
B)an Intangible Loss account.
C)the Patent account.
D)Other Comprehensive Income.

Question

Quizplus · Accepted Answer

Legal expenses incurred in unsuccessful defense of a patent should be debited to Legal Expense account. It is an operating expense and not related to intangible assets or Other Comprehensive Income. The Patent account is adjusted only when a patent is acquired, sold or amortized, and legal costs associated with defending or enforcing the patent are not added to the cost of the asset.

If a Company Incurs Legal Costs in Unsuccessfully Defending Its