Young Co.received a patent on a new type of machine.The legal costs and the patent application costs totaled $80, 000.R&D costs incurred to create the machine were $120, 000.In the year in which the company received the patent, $20, 000 was spent in the successful defense of a patent infringement suit.
Required:
At what amount should the patent be capitalized?

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The Answer of Young Co.received a patent on a new type of machine.The legal costs and the patent application costs totaled $80, 000.R&D costs incurred to create the machine were $120, 000.In the year in which the company received the patent, $20, 000 was spent in the successful defense of a patent infringement suit.
Required:
At what amount should the patent be capitalized?

Young CoReceived a Patent on a New Type of Machine