Lopez Corp

question 9

Multiple Choice

Lopez Corp.incurred $420,000 of research and development costs to develop a product for which a patent was granted on January 2, 2002.Legal fees and other costs associated with registration of the patent totaled $80,000.On March 31, 2007, Lopez paid $120,000 for legal fees in a successful defense of the patent.The total amount capitalized for the patent through March 31, 2007 should be

• A)$200,000.
• B)$500,000.
• C)$540,000.
• D)$620,000.

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Definitions:

Using Algorithms

The practice of applying a step-by-step procedure or formula for solving problems or performing tasks.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive bias in decision making, where the likelihood of an event is estimated based on how similar it is to the typical case.

Convergent Thinking

A cognitive process in which a single, correct solution to a problem is identified through logical reasoning.