Consider the following information from a company's records for 2020:Materials used in research and development projects$4,500Equipment acquired that will have alternative future uses in future R&D projects for five years1,500Personnel costs of employees involved in R&D projects5,500Consulting fees paid to outsiders for R&D projects2,800Indirect costs reasonably allocable to R&D projects250Legal fees associated with registration of a patent resulting from a 2020 R&D project2,500Required:Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income. $ _______

Below is the amount of R&D expenses which should be recorded in 2020.

Answered: Compute the amount of R&D costs that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider the following information from a company's records for 2020:

Materials used in research and development projects	$4,500
Equipment acquired that will have alternative future uses in future
R&D projects for five years	1,500
Personnel costs of employees involved in R&D projects	5,500
Consulting fees paid to outsiders for R&D projects	2,800
Indirect costs reasonably allocable to R&D projects	250
Legal fees associated with registration of a patent resulting from a 2020 R&D project	2,500

Required:
Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income.

$ _______

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