Romo Company spent $190,000 developing a new process,$45,000 in legal fees to obtain a patent, and$91,000 to market the process that was patented, all inthe year 2017. How should these costs be accounted forin 2017?

Romo Company spent $190,000 developing a new process,$45,000 in legal fees to obtain a patent, and$91,000 to market the process that was patented, all inthe year 2017. How should these costs be accounted forin 2017?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Romo Company spent $190,000 developing a new process,
$45,000 in legal fees to obtain a patent, and
$91,000 to market the process that was patented, all in
the year 2017. How should these costs be accounted for
in 2017?

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