You have been hired as a consultant for XYZ Research Co. XYZ Research Co.
incorporated in 2010. XYZ ‘s business centers on developing new technology for
interplanetary exploration. The company has many patents and has historically
expensed all of the costs associated with obtaining their patents. The owners of
XYZ Labs are unsure whether or not if any or all of its patent costs can be
capitalized. They also are unsure if any impairment testing should be done
periodically on their patents. You have been asked by the owners to look into
these issues and provide the
appropriate
accounting treatment for patients
