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

Both research and development costs and legal defense costs are capitalized as the asset value of an internally-developed patent. This is in accordance with generally accepted accounting principles (GAAP) and ensures that the costs incurred to create the patent are recognized as an asset on the company's balance sheet.

Which of the Following Costs Are Capitalized as the Asset