(Answered) The befort cozmpany filed for a patent on a new type of

Accounting

The Befort Cozmpany filed for a patent on a new type of machine. The application costs totaled $12,000. R&D costs incurred to create the machine were $75,000. In the year in which the company filed for and received the patent, it spent $20,000 in the successful defense of a patent infringement suit.
Required:

1. At what amount should the company capitalize the patent?

2. How would you determine the economic life of the patent?

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