If a company incurs legal costs in successfully defending its patent these costs are recorded by debiting

A) Legal Expense.
B) an Intangible Loss account.
C) the Patent account.
D) a revenue expenditure account.

Learning Objectives

• Acquire knowledge on the statutory characteristics and longevity of patents and copyrights, as well as their effects on financial documentation.
• Attain insights into the processes for the acquisition, evaluation, and liquidation of intangible assets, including property, plant, and equipment (PP&E).