Bayolet Company incurred P1,600,000 of research and development costs to develop a product for which a patent was granted at the beginning of the current year. Legal fees and other costs associated with registration of the parent totalled P300,000. At year- end, the entity paid P450,000 for legal fees in a successful defense of the patent. What is the total amount that should be capitalized for the patent at year-end? O Answer not given O P2,300,000 O P750,000 O P300,000 O P2,050,000
Bayolet Company incurred P1,600,000 of research and development costs to develop a product for which a patent was granted at the beginning of the current year. Legal fees and other costs associated with registration of the parent totalled P300,000. At year- end, the entity paid P450,000 for legal fees in a successful defense of the patent. What is the total amount that should be capitalized for the patent at year-end? O Answer not given O P2,300,000 O P750,000 O P300,000 O P2,050,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 38P
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Transcribed Image Text:Bayolet Company incurred P1,600,000 of research and development costs to develop a product for which a patent was granted at the
beginning of the current year. Legal fees and other costs associated with registration of the parent totalled P300,000. At year-
end, the entity paid P450,000 for legal fees in a successful defense of the patent.
What is the total amount that should be capitalized for the patent at year-end?
O Answer not given
O P2,300,000
O P750,000
O P300,000
O P2,050,000
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