Capitalization Versus Expensing Intangible-Related Costs

question 13

Essay

Capitalization versus expensing intangible-related costs
Identify whether the following costs would be expensed (E) or capitalized (C):
___ Lawyer fees related to the successful defence of a patent
___ Routine website maintenance
___ Costs incurred to register a company's name and trademark
___ Interest or borrowing costs related to an internally generated intangible
___ Lawyer fees related to the unsuccessful defence of a patent

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Definitions:

Percussion Instruments

Musical instruments that produce sound by being struck, shaken, or scraped, such as drums or cymbals.

Stringed Instruments

Musical instruments that produce sound by vibrating strings, played either by plucking, striking, or using a bow.

Wind Instruments

Musical instruments that produce sound by the vibration of air in a tube; examples include flutes, clarinets, and trumpets.

Nearly Normal Condition

A condition in statistics where a sample distribution approximates a normal distribution, often requisite for certain types of inference.