Following U.S. GAAP, which of the following costs should be capitalized in the year incurred?
A) costs to successfully defend a patent
B) research and development costs for a new product to be introduced later this year
C) cost to internally generate goodwill
D) development costs for a new product

Question

Quizplus · Accepted Answer

Under U.S. GAAP, costs to successfully defend a patent are capitalized because they extend the life or value of the patent. Other costs like research and development, internally generated goodwill, and development costs are typically expensed as incurred.