During 2021 Hogan Company Incurred $2100000 of Research and Development

question 214

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.

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Definitions:

Possibility of Error

The probability that a statistical inference or decision made might be incorrect due to the limitations of sampling or experimental design.

Statistical Significance

The probability that an observed difference or relationship exists in a population, not just in the sample studied.

Hypothesized Reason

A suggested theory developed from minimal evidence intended to serve as a foundation for additional research.

Statistical Significance

A determination that a relationship between variables is not likely to be due to chance at a specified level of probability.