Benz Co. incurred research and development costs in 2024 as follows: Materials used in research and development projects $ 450,000 Equipment acquired that will have alternate future uses in future research and development projects 3,000,000 Depreciation for 2024 on above equipment 300,000 Personnel costs of persons involved in research and development projects 750,000 Consulting fees paid to outsiders for research and development projects 300,000 Indirect costs reasonably allocable to research and development projects 225,000 Total $5,025,000 Assume economic viability has not been achieved. What amount of research and development costs should be charged to Benz’s 2024 income statement? $
Benz Co. incurred research and development costs in 2024 as follows: Materials used in research and development projects $ 450,000 Equipment acquired that will have alternate future uses in future research and development projects 3,000,000 Depreciation for 2024 on above equipment 300,000 Personnel costs of persons involved in research and development projects 750,000 Consulting fees paid to outsiders for research and development projects 300,000 Indirect costs reasonably allocable to research and development projects 225,000 Total $5,025,000 Assume economic viability has not been achieved. What amount of research and development costs should be charged to Benz’s 2024 income statement? $
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 19E
Related questions
Question
Benz Co. incurred research and development costs in 2024 as follows:
|
Materials used in research and development projects |
$ 450,000 |
|
Equipment acquired that will have alternate future uses in future research and development projects |
3,000,000 |
|
Depreciation for 2024 on above equipment |
300,000 |
|
Personnel costs of persons involved in research and development projects |
750,000 |
|
Consulting fees paid to outsiders for research and development projects |
300,000 |
|
Indirect costs reasonably allocable to research and development projects |
225,000 |
|
Total |
$5,025,000 |
Assume economic viability has not been achieved.
What amount of research and development costs should be charged to Benz’s 2024 income statement? $
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