On January 30, 2015, Red Herring Company was granted a patent by the U. S. Patent Office. The patent provided the company with exclusive right to manufacture a specific product.
The following costs were incurred relative to the development of the product and the filing of the patent:
|Item||Amount in \$|
|Filing fees to secure the patent – incurred in 2015||10,000|
|Legal fees to secure the patent – incurred in 2015||5,000|
|Research and Development related to the product – incurred in 2014||200,000|
|Legal fees to successfully defend the patent against infringement – incurred in 2015||45,000|
What is the total amount of costs that will be capitalized relative to the patent in 2015?