Question

Martha Beyerlein Company incurred $150,000 of research and development costs in its laboratory to develop a patent granted on January 2nd, 2017. On July 31st, 2017, Beyerlein paid $35,000 for legal fees in a successful defense of the patent. The total amount debited to Patents through July 31st, 2017, should be

Answer 1

Answer:

The total amount that will be debited to the patents account on July 31, 2017 will be $35,000.

Explanation:

The amount of $150,000 will not be included in the patents account because this patent was developed by the Martha beyerlein company not purchased from any other firm , so the cost incurred here will be debited to the research and development account. And only the $35,000 that was paid for legal fees will be debited to the patents account.