Harmax Limited Spent $5,000 Registering an Internally Developed Patent and Then

Multiple Choice

Harmax Limited spent $5,000 registering an internally developed patent and then another $20,000 defending and enforcing the patent in its first year.How should the patent be reflected in the financial statements?

A) the full $25,000 expensed in the year
B) $5,000 capitalized as Patent asset and the $20,000 expensed
C) $20,000 capitalized as Patent asset and the $5,000 expensed
D) the full $25,000 capitalized in the year