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Which of the following would be capitalized to an intangible asset account Legal fees to successfully...

Which of the following would be capitalized to an intangible asset account

  • Legal fees to successfully defend the intangible.

  • The amount a buyer offered to pay for an intangible.

  • Rise in the fair value of the intangible.

  • The cost of an unsuccessful defense.

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Answer #1

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--Correct Answer = Option #1: Legal fees to successfully defend the intangible would be capitalized to an intangible asset account.

--Intangible assets are capitalized by the amount of cost spent on acquisition of such intangible asset. This inckudes the legal fees to defend the asset successfully.

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