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Financial Accounting

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What Costs Are Capitalized as a Patent Cost vs. Research (R&D)

FINACT-WMN@B9

Drugs Inc. incurred \$60,000 in the current year for research and development costs in its laboratory to develop a new soon-to-be-patented medication. It spent \$19,000 in legal fees for a patent granted on March 1 of the current year. On July 31 of the current year, Henson paid \$6,000 settling a claim saying that they violated a patent of the another party in their new medication.

What is the total amount that should be debited to Patents as of July 31st of the current year?