During the first 6 months of the 2006-07 financial year, $400,000 was expended for legal work in connection with a successful patent application. The patent became effective 1 November 2006. The legal life of the patent is 20 years and the economic life of the patent is expected to be approximately 10 years.
What amount is to be capitalized and how much is to be recorded in the income statement?::)

During the first 6 months of the 2006-07 financial year, $400,000 was expended for legal work in connection with a successful patent application. The patent became effective 1 November 2006. The legal life of the patent is 20 years and the economic life of the patent is expected to be approximately 10 years.
What amount is to be capitalized and how much is to be recorded in the income statement?::)

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