During 2021 Hogan Company incurred $2100000 of research and development costs in to develop a new product and paid $200000 in legal fees for a patent on the product.On July 31 2022 Hogan paid $1290000 for legal fees in a successful defense of the patent.Use the following tabular analysis to record the cost of the legal defense assuming that the bill was paid in cash.
A)Increase Cash and Revenues $1290000.
B)Decrease Cash and increase Expenses $1290000.
C)Increase Patents and decrease Cash $1290000.
D)Increase Patents and decrease Cash $1490000.

Question

During 2021 Hogan Company incurred $2100000 of research and development costs in to develop a new product and paid $200000 in legal fees for a patent on the product.On July 31 2022 Hogan paid $1290000 for legal fees in a successful defense of the patent.Use the following tabular analysis to record the cost of the legal defense assuming that the bill was paid in cash. 
A)Increase Cash and Revenues $1290000. 
B)Decrease Cash and increase Expenses $1290000. 
C)Increase Patents and decrease Cash $1290000. 
D)Increase Patents and decrease Cash $1490000.

Quizplus · Accepted Answer

The Answer of During 2021 Hogan Company incurred $2100000 of research and development costs in to develop a new product and paid $200000 in legal fees for a patent on the product.On July 31 2022 Hogan paid $1290000 for legal fees in a successful defense of the patent.Use the following tabular analysis to record the cost of the legal defense assuming that the bill was paid in cash. 
A)Increase Cash and Revenues $1290000. 
B)Decrease Cash and increase Expenses $1290000. 
C)Increase Patents and decrease Cash $1290000. 
D)Increase Patents and decrease Cash $1490000.

During 2021 Hogan Company Incurred $2100000 of Research and Development