Rooney Company incurred $560,000 of research and development cost in its laboratory to develop a patent granted on January 1, 2015. On July 31, 2015, Rooney paid $84,000 for legal fees in a successful defense of the patent. The total amount debited to Patents through July 31, 2015, should be:

Question

Quizplus · Accepted Answer

Research and development costs are expensed as incurred and not capitalized. Only the legal fees of $84,000 for the successful defense of the patent are capitalized and debited to the Patents account.

Rooney Company Incurred $560,000 of Research and Development Cost in Its