During 2020, Mowgli Company incurred the following costs: R&D services performed by Elijah Company for Mowgli P1,500,00 R&D costs incurred by Mowgli Company for Elisha Company and reimbursable by Elisha Company 2,400,000 Cost incurred in the conceptual formulation of possible process alternative 2,000,000 Building cost that will be used as R & D facility, acquired on January 1, 2013, with estimated useful life of 10 years 3,000,000 Design of tools, jigs and moulds 1,300,000 Cost of testing prototype and design modifications 900,000 In its 2020 profit and loss, what should Mowgli Company report as research and development expense?
During 2020, Mowgli Company incurred the following costs:
R&D services performed by Elijah Company for Mowgli P1,500,00
R&D costs incurred by Mowgli Company for Elisha
Company and reimbursable by Elisha Company 2,400,000
Cost incurred in the conceptual formulation of possible
process alternative 2,000,000
Building cost that will be used as R & D facility,
acquired on January 1, 2013, with estimated useful
life of 10 years 3,000,000
Design of tools, jigs and moulds 1,300,000
Cost of testing prototype and design modifications 900,000
In its 2020
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