The cost of successfully defending a patent in an infringement suit should be
A)charged to Legal Expenses.
B)deducted from the carrying amount of the patent.
C)added to the cost of the patent.
D)recognized as a loss in the current period.

Question

Quizplus · Accepted Answer

The cost of successfully defending a patent in an infringement suit is considered to add value to the patent and thus should be capitalized by adding it to the cost of the patent. This reflects the expenditure's role in securing the patent's enforceability and future economic benefits.

The Cost of Successfully Defending a Patent in an Infringement