During 2021 Hogan Company Incurred $2100000 of Research and Development

Multiple Choice

During 2021 Hogan Company incurred $2100000 of research and development costs in to develop a new product and paid $200000 in legal fees for a patent on the product.On July 31 2022 Hogan paid $1290000 for legal fees in a successful defense of the patent.Use the following tabular analysis to record the cost of the legal defense assuming that the bill was paid in cash.

A) Increase Cash and Revenues $1290000.
B) Decrease Cash and increase Expenses $1290000.
C) Increase Patents and decrease Cash $1290000.
D) Increase Patents and decrease Cash $1490000.