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31 March, 20:26

During the current year, Lyle Co. incurred $204,000 of research and development costs in its laboratory to develop a patent that was granted on July 1. Legal fees and other costs associated with registration of the patent totaled $41,000. The estimated useful life of the patent is 10 years. What amount should Lyle capitalize for the patent on July 1?

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  1. 31 March, 20:51
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    It will capitalize 245,000 to recognize the patent intangible asset

    Explanation:

    It will capitalize the entire research adn development cost as well as the fees and registration cost as are part of the incurred cost needed to obtain the patent

    Therefore: 204,000 + 41,000 = 245,000
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Home » Business » During the current year, Lyle Co. incurred $204,000 of research and development costs in its laboratory to develop a patent that was granted on July 1. Legal fees and other costs associated with registration of the patent totaled $41,000.
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