Consider the following information from a company's records for 2020: Feb. 11 Purchased materials exclusively for use in R&D projects. Of these materials, 30% are left at the end of 2020 and will be used in the same project in 2021 (they have no alternative use). $85,000 Aug. 28 Construction costs for a new research facility that has been placed in use on this date and is expected to be used to house multiple R&D activities for 20 years. The facility has no expected salvage value. 600,000 Aug. 29 Purchased an experimental machine from an inventor. The machine is expected to be used for a particular R&D activity for two years, after which it will have no residual value. 16,000 Nov. 26 Salaries paid to employees involved in R&D. 35,000 Required: Compute the amount of R&D expense for 2020. The company normally uses straight-line depreciation for plant assets. $
Consider the following information from a company's records for 2020:
|
Feb. 11 |
Purchased materials exclusively for use in R&D projects. Of these materials, 30% are left at the end of 2020 and will be used in the same project in 2021 (they have no alternative use). |
$85,000 |
|
|
|
|
|
Aug. 28 |
Construction costs for a new research facility that has been placed in use on this date and is expected to be used to house multiple R&D activities for 20 years. The facility has no expected salvage value. |
600,000 |
|
|
|
|
|
Aug. 29 |
Purchased an experimental machine from an inventor. The machine is expected to be used for a particular R&D activity for two years, after which it will have no residual value. |
16,000 |
|
|
|
|
|
Nov. 26 |
Salaries paid to employees involved in R&D. |
35,000 |
|
|
|
|
Required:
Compute the amount of R&D expense for 2020. The company normally uses straight-line
$
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