Current Attempt in Progress Wildhorse 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 $290,500 57,100 Total to be expensed for research and Development $ 131,000 126,000 47,100 34,100 Compute the amount to be reported as research and development expense by Wildhorse on its current year income statement. Assume equipment is purchased at the beginning of the year.

Current Attempt in Progress Wildhorse 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 $290,500 57,100 Total to be expensed for research and Development $ 131,000 126,000 47,100 34,100 Compute the amount to be reported as research and development expense by Wildhorse on its current year income statement. Assume equipment is purchased at the beginning of the year.

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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