In the current year, Betz Company incurred $400,000 of research and development costs to develop a patent. It is estimated that these costs will be recouped at the end of 3 years. On August 1 of the current year, the patent was granted. On November 1, Betz Company paid $50,000 in legal fees in a successful defense of the patent. How should Betz Company report the research and development costs and legal fees for the current year? O Research and development costs of $400.000 are included on the income statement as an expense and legal fees of $50.000 are reported on the balance sheet as part of the Patents account O Research and development costs of $400.000 are included on the balance sheet as part of the Patents account and legal fees of $50,000 are reported on the income statement as an expense. O Both the research and development costs of $400,000 and the legal fees of $50,000 are included on the income statement as expenses O Both the research and development costs of $400,000 and the legal fees of $50,000 are included on the balance sheet as part of the Patents account. A company purchased office equipment for $48000 and estimated a salvage value of $7000 at the end of its 5-year useful life. The constant percentage to be applied against book value each year if the double-declining balance method is used is O 19% 40%. 15%. 34%. A computer company has $2850000 in research and development costs. Before accounting for these costs, the net income of the company is $1970000. What is the amount of net income or loss after these R&D costs are accounted for? O $0 O Cannot be determined from the information provided $1970000 net income O 5880000 loss