VI. McDonald Company spend $525,000 on a research project in 2024, but by the end...
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VI. McDonald Company spend $525,000 on a research project in 2024, but by the end of 2024, it is impossible to determine whether any benefit will be derived from it. If the project is completed in 2025, a successful patent is obtained. a. The R&D costs to complete the project after 2024 are $165,000 ($50,000 of these costs were incurred after achieving economic viability). The administrative and legal expenses incurred in obtaining patent number in 2025 total $35,000. The patent has an expected useful life of 5 years. Required Record these costs in journal entry form. Also, record patent amortization (full year) in 2025. b. In 2026, the company successfully defends the patent in extended litigation at a cost of $48,000, thereby extending the patent life to December 31, 2032. Required What is the proper way to account for this cost? Also, record patent amortization (full year) in 2026
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