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A purchased intangible is valued at its original cost. The original cost for acquiring a patent would include legal costs to acquire the required filing fees and purchase price.
What expenses are covered by the price of an intangible asset?
An identifiable cost that is difficult to measure or estimate precisely is known as an intangible cost. Impairment of benevolence, a decline in employee morale, or brand damage are examples of common intangible costs.
Non-physical property is referred to as intangible assets. An intangible asset's acquisition cost is not recovered in a single accounting period but rather through amortization over the course of its economic life.
Therefore, A patent's initial cost would include the purchase price and legal fees needed to obtain the necessary filing fees.
Learn more about intangible assets from the given link.
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