Question

Martha beyerlein company incurred $150,000 of research and development costs in its laboratory to develop a patent granted on january 2, 2015. on july 31, 2015, beyerlein paid $35,000 for legal fees in a successful defense of the patent. the total amount debited to patents through july 31, 2015, should be

Answer 1

Martha Beyerlein Company should only record $150,000 as a debit to patents through July 31, 2015. The legal fee for the successful defense of the patent is not considered part of the cost of the patent. Only the research and development costs should be debited as patents.