A patent purchased by a city would be considered a capital asset.

Name: A patent purchased by a city would be considered a capital asset.
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As discussed in Chapter five, a patent purchased and used by the city would be considered an intangible asset, which is a capital asset that does not have physical existence. If such assets are separable from the government, which is the case for a patent, the assets are accounted for like any other capital assets.

A Patent Purchased by a City Would Be Considered a Capital