A price company from time to time embarks on a research program when a special project seems to offer possibilities in 2019 the company expands $325,000 on a research project, but by the end of 2019, it is possible to determine whether any benefits will be driven from it. What account should be charged from 325,000 and how should be shown in the financial statement? Additional engineering and consulting costs incurred in 2021 are required to advance the design of the project in the manufacturing stage. Total $60,000. These costs enhance the design of the product considerably. Discuss the proper account treatment for this cost.
A price company from time to time embarks on a research program when a special project seems to offer possibilities in 2019 the company expands $325,000 on a research project, but by the end of 2019, it is possible to determine whether any benefits will be driven from it. What account should be charged from 325,000 and how should be shown in the financial statement? Additional engineering and consulting costs incurred in 2021 are required to advance the design of the project in the manufacturing stage. Total $60,000. These costs enhance the design of the product considerably. Discuss the proper account treatment for this cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A price company from time to time embarks on a research program when a special project seems to offer possibilities in 2019 the company expands $325,000 on a research project, but by the end of 2019, it is possible to determine whether any benefits will be driven from it. What account should be charged from 325,000 and how should be shown in the financial statement? Additional engineering and consulting costs incurred in 2021 are required to advance the design of the project in the manufacturing stage. Total $60,000. These costs enhance the design of the product considerably. Discuss the proper account treatment for this cost.
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