Question: A company spent $ 5 0 0 million developing a new drug and obtained a patent on that drug. How should this event be reflected

A company spent $500 million developing a new drug and obtained a patent on that drug.
How should this event be reflected in the accounting equation?
Assets Increase, Shareholders' Equity Decreases.
Assets Increase, Shareholders' Equity Increases.
Assets Decrease, Shareholders' Equity Decreases.
Assets Decrease, Shareholders' Equity Increases.
A company spent $500 million developing a new drug and obtained

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