Coleman Inc produces software for sale and internal use. In the current year, Coleman incurred the following costs: research & development costs outsourced to a third party of $30,000; design and testing of preproduction prototypes of $110,000; testing in search for new products of $15,000; and quality control costs of $18,000. What amount of costs should be expensed as research & development in the current year?

Which term signifies that expenses can begin to be capitalized for software development?

ABC incurred organization costs of $3,000 at the beginning of its first year of operations. How should ABC treat the organization costs in its financial statements?

During Year 5, BioTech, Inc incurred $500,000 of research and development costs to develop a product for which a patent was granted on August 1, Year 5. Legal fees and other costs associated with the patent totaled $85,000. BioTech estimates the useful life of the patent to be 15 years. What amount should BioTech capitalize for the patent on August 1, Year 1?

ABC company incurred legal fees in defending its patent rights. These legal fees should be capitalize when the outcome of the litigation is:

Which of the following costs will be expensed rather than capitalized?