New Co. received a patent on a new type of machine. The legal costs and the patent application costs totaled $180,000. R&D costs incurred to create the machine were $120,000. In the year in which the company received the patent, $25,000 was spent in the successful defense of a patent infringement suit.
Required:
At what amount should the patent be capitalized?

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The Answer of New Co. received a patent on a new type of machine. The legal costs and the patent application costs totaled $180,000. R&D costs incurred to create the machine were $120,000. In the year in which the company received the patent, $25,000 was spent in the successful defense of a patent infringement suit.
Required:
At what amount should the patent be capitalized?

New Co Received a Patent on a New Type of Machine