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

Question

Quizplus · Accepted Answer

Legal costs incurred in unsuccessfully defending a patent are considered operating expenses and should be recorded as Legal Expense. They do not directly increase the value of the patent or create a new intangible asset, hence are treated as an expense in the period they are incurred.

If a Company Incurs Legal Costs in Unsuccessfully Defending Its