Gates, Inc. buys two patents: Patent A cost $120,000 and Patent B cost $160,000. Legal fees to establish the patents were $20,000 for each. Gates was then sued for patent infringement and had to pay legal fees of $50,000 each to defend the patents. The defense of Patent A was successful but the defense of Patent B was not. What should be reported as the intangible asset for this company?

$70,000 $190,000 $280,000 $120,000