Consultant for XYZ Research Co.

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 patents. In minimum 5-7 sentences identify key terms in your case and state why you believe each is relevant to your case. Remember to showcase 7 key terms for an A. Must also cite and reference at least 1 outside source.      

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