Education

IP Patent Application Cost (Capitalized)

Capitalizing legal and filing fees for a patent arising from institutional research.

Account NameTypeDebit ($)Credit ($)
Intangible Assets — PatentsAsset (+)8,000.00-
Cash / Accounts PayableAsset/Liability (-)-8,000.00

💡 Accountant's Note

Patent application and registration costs are capitalized as intangible assets. They are amortized over the patent's useful life (typically up to 20 years). Tech transfer royalties then generate income from this asset.

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