Pierce Company incurred $150,000 of research and development costs in its laboratory to develop a new product.

Question:

Pierce Company incurred $150,000 of research and development costs in its laboratory to develop a new product. It spent $20,000 in legal fees for a patent granted on January 2, 2017. On July 31, 2017, Pierce paid $15,000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2017?

(a) $150,000.

(c) $185,000.

(b) $35,000.

(d) $170,000.

(LO 1)

(LO 2)

(LO 3)

(LO 4)

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