Question

Martha Beyerlein Company incurred $150,000 of research and development costs in its laboratory to develop a patent granted on January 2, 20120. On July 31, 2020, Beyerlein paid $35,000 for legal fees in a successful defense of the patent. The total amount debited to Patents through July 31, 2020, should be

Answer 1

The amount which is to be debited to the account of Patents is $35,000

Step-by-step explanation:

Patent is the right which is given to an investor to stop other people or an individual using or making their invention.

So, company incurred $150,000 for the research and development costs in order to develop the patent and $35,000 is paid for legal fees.

Therefore, the amount of $35,000, is the aggregate amount of patent as it is paid in obtaining the patent.