Pharoah Company incurred $890000 of research and development costs in its laboratory to develop a new product. It spent $150000 in legal fees for a patent granted on January 2, 2022. On July 31, 2022, Pharoah paid $90000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2022? $0. $240000. O $890000. O $1130000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pharoah Company incurred $890000 of research and development costs in its laboratory to develop a new product. It spent
$150000 in legal fees for a patent granted on January 2, 2022. On July 31, 2022, Pharoah paid $90000 for legal fees in a
successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2022?
O $0.
$240000.
$890000.
O $1130000.
Transcribed Image Text:Current Attempt in Progress Pharoah Company incurred $890000 of research and development costs in its laboratory to develop a new product. It spent $150000 in legal fees for a patent granted on January 2, 2022. On July 31, 2022, Pharoah paid $90000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2022? O $0. $240000. $890000. O $1130000.
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