Henson Company Incurred $300,000 of Research and Development Costs in Its

Multiple Choice

Henson Company incurred $300,000 of research and development costs in its laboratory to develop a new product. It spent $40,000 in legal fees for a patent granted on January 2, 2010. On July 31, 2010, Henson paid $30,000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2010?

A) $300,000
B) $70,000
C) $370,000
D) Some other amount