Question

During 2016, Frank Company incurred $200,000 in legal fees in defending a patent with a carrying value of $3,500,000 against an infringement. Farver's lawyers were successful with the defense of the patent. The legal fees should be

Answer 1

Answer: $320,000

Explanation:

Answer 2

Answer:

capitalized and amortized over the remaining economic life or legal life of the patent, whichever is shorter.

Explanation:

capitalized and amortized over the remaining economic life or legal life of the patent, whichever is shorter.