If a company incurs legal costs in successfully defending its patent, these costs are recorded by debiting

Name: If a company incurs legal costs in successfully defending its patent, these costs are recorded by debiting
Brand: Quizplus
Rating: 4.9 (48 reviews)

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 enhance the value of the patent, which is an intangible asset, and are not merely expenses of the period.

If a Company Incurs Legal Costs in Successfully Defending Its