Question

hey there,
i was wondering if anyone could help me with the following questions. I would really appreciate your help .

Multiple choice:

A company obtained a patent for a drug it developed. The amount capitalized in asocciation with the drug patent will include:

a. Only the cost of developing the drug.
b. Only the cost of filing for a patent.
c. The cost of developing the drug and filing for a patent.
d. Neither the cost of developing the drug and filing for a patent.

I'm confused between b and c.

True/False:

1. It is assumed that all property,plant and equipment will be consumed over time.

2. an estimate of un-collectable accounts is generally based on the company's historical experience rather than on known un-collectable accounts.

3. non-current assests include all types of property, plant and equipment as well as intangible assets without non-current prepaid.

I think it is False, True and False. I would like to confirm it with someone though.

Answer 1

It seems to me that c. is the best answer to the first question.

I agree with your true/false answers.