Billy Dee Co. incurred the following costs during 2021: Significant modification to the formulation of a chemical product                $160,000 Trouble-shooting in connection with breakdowns during commercial       production                                                                                                    150,000 Cost of exploration of new formulas                                                                 200,000 Seasonal or other periodic design changes to existing products                      185,000 Laboratory research aimed at discovery of new technology                            225,000   Calculate the amount that Billy Dee Co. should report on its income statement for the year ended December 31, 2021 for research and development expense.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Billy Dee Co. incurred the following costs during 2021:

Significant modification to the formulation of a chemical product                $160,000

Trouble-shooting in connection with breakdowns during commercial

      production                                                                                                    150,000

Cost of exploration of new formulas                                                                 200,000

Seasonal or other periodic design changes to existing products                      185,000

Laboratory research aimed at discovery of new technology                            225,000

 

Calculate the amount that Billy Dee Co. should report on its income statement for the year ended December 31, 2021 for research and development expense.

 

 

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