Hopson Company incurred $900000 of research and development costs in its laboratory to develop a new product.It spent $120000 in legal fees for a patent granted on January 2 2022.On July 31 2022 Hopson paid $90000 for legal fees in a successful defense of the patent.What is the total amount of the increase to Patents through July 31 2022?
A)$900000.
B)$210000.
C)$1110000.
D)Some other amount.

Question

Quizplus · Accepted Answer

The total amount of increase to Patents through July 31, 2022, would be the sum of research and development costs incurred and legal fees paid for obtaining and defending the patent. Therefore, the total amount would be $900,000 + $120,000 + $90,000 = $1,110,000. However, the question only asks for the amount through July 31, 2022, which would be $900,000 + $120,000 = $1,020,000. Therefore, the correct answer is B) $210,000.

Hopson Company Incurred $900000 of Research and Development Costs in Its