The cost of successfully defending a patent in an infringement suit should be
A) charged to Legal Expenses.
B) deducted from the book value of the patent.
C) added to the cost of the patent.
D) recognized as a loss in the current period.

Question

Quizplus · Accepted Answer

The cost of successfully defending a patent in an infringement suit is capitalized and added to the cost of the patent. This is because such costs enhance the patent's value and extend its useful life.

The Cost of Successfully Defending a Patent in an Infringement