If a company incurs legal costs in successfully defending its patent, these costs are recorded by debiting
A) Legal Expense.
B) a Loss on Intangibles account.
C) the Patent account.
D) an operating expenditure account.

Question

Quizplus · Accepted Answer

Legal costs incurred in successfully defending a patent are capitalized and recorded by debiting the Patent account. This is because such costs are considered to increase the value of the patent, an intangible asset, and extend its useful life.

If a Company Incurs Legal Costs in Successfully Defending Its