Grand Trunk Corp

question 31

Multiple Choice

Grand Trunk Corp.incurred $160,000 of basic research and $50,000 of development costs to develop a product for which a patent was granted on January 2, 2012.Legal fees and other costs associated with registration of the patent totalled $60,000.On March 31, 2017, Grand Trunk paid $90,000 for legal fees in a successful defence of the patent.The total amount capitalized for the patent through March 31, 2017 should be

• A)$360,000.
• B)$270,000.
• C)$200,000.
• D)$150,000.

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Definitions:

Impulsive

Characterized by actions taken without forethought or consideration of the consequences; spontaneous behavior.

Conservative

A political and social ideology that emphasizes the value of traditional institutions and practices, resistance to rapid change, and cautiousness in political and social reform.

Liberal

Pertaining to a political and social philosophy that emphasizes individual rights, freedom of expression, and a preference for governmental intervention in social and economic matters.

Openness

A personality trait characterized by an appreciation for art, emotion, adventure, and unusual ideas; imaginative and curious.