Hopson Company Incurred $900,000 of Research and Development Costs in Its

Multiple Choice

Hopson Company incurred $900,000 of research and development costs in its laboratory to develop a new product. It spent $120,000 in legal fees for a patent granted on January 2, 2017. On July 31, 2017, Hopson paid $90,000 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) $900,000.
B) $210,000.
C) $1,110,000.
D) Some other amount.