Abc developed a new horse transport device and incurred research and development costs of
$250,000. rather than continue with their own research, abc decided to purchase a patent for a similar design from vail, inc. for $350,000. what are the total assets and expenses for these developments?
a. assets $600,000; expenses $0. b) assets $250,000; expenses $350,000.
c) assets $350,000; expenses $250,000. d) assets $0; expenses $600,000.

The correct option is C

Explanation:

In developing the horse transport device, the expense or the cost which is incurred amounts to $250,000, therefore, the expense amounts to $250,000. Whereas, the ABC decided to purchase a patent for $350,000, patent is an intangible asset because the patent does not have any physical substance and provide the business a long term value. Therefore, it is an asset which worth $350,000.

Hence, Assets is $350,000 and Expense is $250,000.

an online clothing brand

explanation: