Blossom Company incurred the following costs during the current year in connection with its research and development activities. Cost of equipment acquired that will have alternative uses in future R&D projects over the next 5 years (uses straight-line depreciation) Materials consumed in R&D projects Consulting fees paid to outsiders for R&D projects Personnel costs of persons involved in R&D projects Indirect costs reasonably allocable to R&D projects Materials purchased for future R&D projects Total to be expensed for research and Development $280,000 $ 55,000 110,000 120,000 45,000 Compute the amount to be reported as research and development expense by Blossom on its current year income statement. Assume equipment is purchased at the beginning of the year. 32,000
Blossom Company incurred the following costs during the current year in connection with its research and development activities. Cost of equipment acquired that will have alternative uses in future R&D projects over the next 5 years (uses straight-line depreciation) Materials consumed in R&D projects Consulting fees paid to outsiders for R&D projects Personnel costs of persons involved in R&D projects Indirect costs reasonably allocable to R&D projects Materials purchased for future R&D projects Total to be expensed for research and Development $280,000 $ 55,000 110,000 120,000 45,000 Compute the amount to be reported as research and development expense by Blossom on its current year income statement. Assume equipment is purchased at the beginning of the year. 32,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Blossom Company incurred the following costs during the current year in connection with its research and development activities.
Cost of equipment acquired that will have alternative
uses in future R&D projects over the next 5 years
(uses straight-line depreciation)
Materials consumed in R&D projects
Consulting fees paid to outsiders for R&D projects
Personnel costs of persons involved in R&D projects
Indirect costs reasonably allocable to R&D projects
Materials purchased for future R&D projects
$280,000
Total to be expensed for research and Development
55,000
$
110,000
120,000
Compute the amount to be reported as research and development expense by Blossom on its current year income statement. Assume
equipment is purchased at the beginning of the year.
45,000
32,000
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