Assume that X incurs $180,000 in legal costs on March 1, 2017, to successfully defend a patent. The patents useful life is 12 years, amortized on a straight-line basis. The adjusting entry on December 31, 2017 is ------

Select one:

a. Dr. Depreciation expense $120,000 and Cr. Patent or Accumulated Amortization $120,000.

b. Dr. Depreciation expense $180,000 and Cr. Patent or Accumulated Amortization $180,000.

c. Dr. Amortization expense $12,500 and Cr. Patent or Accumulated Amortization $12,500.

d. Dr. Depreciation expense $16,000 and Cr. Patent or Accumulated Amortization $16,000.