Which of the following costs should be capitalized in the year incurred?
A) Research and development costs.
B) Costs to internally generate goodwill.
C) Organizational costs.
D) Costs to successfully defend a patent.

Question

Quizplus · Accepted Answer

Costs to successfully defend a patent can be capitalized as they enhance the value of the patent and provide future economic benefits. However, the other options, such as research and development costs, costs to internally generate goodwill, and organizational costs, are usually expensed as incurred since they do not meet the criteria for capitalization under accounting standards.

Which of the Following Costs Should Be Capitalized in the Year