Hopson Company incurred $900,000 of research and development costs in its laboratory to develop a new product.It spent $120,000 in legal fees for a patent granted on January 2, 2022.On July 31, 2022, Hopson paid $90,000 for legal fees in a successful defense of the patent.What is the total amount that should be debited to Patents through July 31, 2022?
A)$900,000
B)$210,000
C)$1,110,000
D)$0

Question

Quizplus · Accepted Answer

The total amount debited to Patents includes the legal fees for obtaining the patent ($120,000) and the legal fees for the successful defense of the patent ($90,000), totaling $210,000. Research and development costs are not capitalized as part of the patent.

Hopson Company Incurred $900,000 of Research and Development Costs in Its