Legal fees incurred in successfully defending a patent have which of the following impacts?
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- Legal fees incurred in successfully defending a patent have which of the following impacts?
- Increase to legal fee expense
- Decrease to amortization expense
- Increase to patents account
- Decrease to patents account
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- Costs that are capitalized with regard to a patent include a. Legal fees of obtaining the patent, incidental costs of obtaining the patent, and costs of successful patent infringement suits. b. Legal fees of obtaining the patent, incidental costs of obtaining the patent, and research and development costs incurred on the invention that is patented. c. Legal fees of obtaining the patent, costs of successful patent infringement suits, and research and development costs incurred on the invention that is patented. d. Incidental costs of obtaining the patent, costs of successful and unsuccessful patent infringement suits, and the value of any signed patent licensing agreement.Compute for the gain on sale of patent under the following problemImpaired goodwill and amortization of patent
- Legal fees incurred by a company in defending its patent rights should be expensed when the outcome of litigation is * a. Successful b. not successful c. both A and B d. neither A nor BDefinition of the following in Accounting 1. Cost of Patent Inclusions 2. Impairment of Trademark 3. Franchise CostCan someone please help with this study guide question it’s also asks for ending balance of patents,goodwill, franchises, research and development expense, and amortization expense
- Which of the following statements is true? Question 2 options: a The capitalizable costs of patents are legal fees and other registration costs. b An identifiable tangible asset developed internally is never recognized in the accounts as an asset. c Intangible assets usually have a residual value that must be considered in the amortization of cost. d An intangible asset is usually amortized by a credit to an income account.Research & Development costs: A)Are included in the cost of a patent on the balance sheet B) Should be expensed C) Are amortized over the useful life of the patent D) Both A&B are correctHow do you determine the market value of a patent?
- (Multiple Choice Question) For the purpose of calculating amortization, the costs of defending a patent in court are: 1. Divided by 2, and then added to the cost of the patent 2. Added to the cost of the patent 3. Recorded as a separate expense 4. Subtracted from the cost of the patentWhich of the following is most likely to result in the recognition of a liability? a. Customers become entitled to rebates for their past purchases. b. Intention to acquire inventories in a future period. c. Entering into a purchase contract for future delivery. d. Agreeing on an irrevocable future commitment that is not burdensome at present.Which of the following is/are not capitalized as an intangible asset? Select one: a. Legal costs to defend a patent successfully and goodwill acquired when a company purchases another company. b. Costs of an internally developed patent and goodwill acquired when a company purchases another company. c. Costs of an internally developed patent and legal costs to defend a patent successfully. d. Goodwill acquired when a company purchases another company and costs to purchase a patent. e. Costs to purchase a patent and legal costs to defend a patent successfully.