Patent Corp., a publicly accountable entity, purchased the following assets: $\begin{array}{|l|lcc|}
\hline\text { Patents } & 18,000 \
\hline\text { Trademarks } &12,000\
\hline\text { Equipment } &32,000\
\hline\text { Training on using equipment } &15,000\
\hline
\end{array}$
How much, if any, of the costs can be capitalized as intangible assets?
A)$0
B)$30,000
C)$62,000
D)$77,000

Question

Patent Corp., a publicly accountable entity, purchased the following assets: $\begin{array}{|l|lcc|}
  \hline\text { Patents } & 18,000 \
 \hline\text { Trademarks } &12,000\
 \hline\text { Equipment } &32,000\
 \hline\text { Training on using equipment } &15,000\
 \hline
\end{array}$
 How much, if any, of the costs can be capitalized as intangible assets?
A)$0
B)$30,000
C)$62,000
D)$77,000

Quizplus · Accepted Answer

The costs that can be capitalized as intangible assets are the patents ($18,000) and trademarks ($12,000), totaling $30,000. Equipment and training costs are not considered intangible assets.

Patent Corp How Much, If Any, of the Costs Can Be Capitalized