Patent Corp How Much of the Costs Can Be Capitalized as Intangible

question 43

Multiple Choice

Patent Corp., a publicly accountable entity, incurred the following costs: $$\begin{array} { | l | r | } \hline\text { Purchase of patents } & 18,000 \\\hline \text { Development of economic goodwill } & 12,000 \\\hline \text { Legal costs to successfully defend trademark } & 32,000 \\\hline \text { Lawsuit to successfully defend product brand } & 15,000 \\\hline\end{array}$$
How much of the costs can be capitalized as intangible assets?

• A)$18,000
• B)$50,000
• C)$65,000
• D)$77,000

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Definitions:

Overfishing

The depletion of fish stocks due to fishing at a rate that is unsustainable.

Property Rights

Legal rights to possess, use, and dispose of assets including tangible and intangible properties.

Deforested

Areas that have been cleared of trees and converted to non-forest use.

Extraction Cost

All costs associated with extracting a natural resource and readying it for sale.