Blossom Corp. incurred the following costs during 2023 in connection with its research and development phase activities: Cost of equipment acquired for use in research and development projects over the next 5 years (straight-line depreciation used) Materials consumed in research projects Materials consumed in the development of a product committed for manufacturing in the first quarter of 2024 Consulting fees paid in the last quarter of 2023 to outsiders for research and development projects, including $4,000 for advice related to the $30,000 of materials used above Personnel costs for research and development projects Indirect costs reasonably allocated to research and development projects General borrowing costs on the company's line of credit Training costs for a new customer service software program $230,000 60,000 30,000 85.000 Amount to be reported as research and development expense $ 107,000 24,000 11,000 17,000 (a) Calculate the amount to be reported as research and development expense by Blossom on its income statement for 2023. Assume the equipment is purchased at the beginning of the year. Assume the company follows IFRS for financial reporting pur

Blossom Corp. incurred the following costs during 2023 in connection with its research and development phase activities: Cost of equipment acquired for use in research and development projects over the next 5 years (straight-line depreciation used) Materials consumed in research projects Materials consumed in the development of a product committed for manufacturing in the first quarter of 2024 Consulting fees paid in the last quarter of 2023 to outsiders for research and development projects, including $4,000 for advice related to the $30,000 of materials used above Personnel costs for research and development projects Indirect costs reasonably allocated to research and development projects General borrowing costs on the company's line of credit Training costs for a new customer service software program $230,000 60,000 30,000 85.000 Amount to be reported as research and development expense $ 107,000 24,000 11,000 17,000 (a) Calculate the amount to be reported as research and development expense by Blossom on its income statement for 2023. Assume the equipment is purchased at the beginning of the year. Assume the company follows IFRS for financial reporting pur

SWFT Essntl Tax Individ/Bus Entities 2020

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Chapter5: Business Deductions

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Question

Blossom Corp. incurred the following costs during 2023 in connection with its research and development phase activities:
Cost of equipment acquired for use in research and development projects over the next 5 years (straight-line depreciation used)
Materials consumed in research projects
Materials consumed in the development of a product committed for manufacturing in the first quarter of 2024
Consulting fees paid in the last quarter of 2023 to outsiders for research and development projects, including $4,000 for advice related to the $30,000 of materials used above
Personnel costs for research and development projects
Indirect costs reasonably allocated to research and development projects
General borrowing costs on the company's line of credit
Training costs for a new customer service software program
Amount to be reported as research and development expense
$230,000
$
60,000
30,000
85,000
107,000
24,000
11,000
(a) Calculate the amount to be reported as research and development expense by Blossom on its income statement for 2023. Assume the equipment is purchased at the beginning of the year. Assume the company follows IFRS for financial reporting purposes.
17,000

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