Patent Corp

question 59

Multiple Choice

Patent Corp. ,a publicly accountable entity,purchased the following assets:

How much,if any,of the costs can be capitalized as intangible assets?

• A)$0
• B)$30,000
• C)$62,000
• D)$77,000

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Definitions:

Bond Issue Costs

The expenses associated with the issuance of bonds, including legal, accounting, underwriting fees, and other related costs.

Straight-Line Method

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

Effective Interest Method

A technique used in accounting to allocate the interest expense or income of a financial instrument over its lifespan in a way that results in a constant rate on the carrying amount.

Bonds Payable

Long-term liabilities representing a company's commitment to pay a specified amount of money at certain future dates for funds borrowed.