E12.17 (LO 5) (Accounting for R&D Costs) Martinez Company incurred the following costs during 2022 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 $330,000 59,000 Consulting fees paid to outsiders for R&D projects 100,000 Personnel costs of persons involved in R&D projects 128,000 Indirect costs reasonably allocable to R&D projects 50,000 Materials purchased for future R&D projects 34,000 Instructions Compute the amount to be reported as research and development expense by Martinez on its income statement for 2022. Assume equipment is purchased at the beginning of the year and economic viability has not been achieved.

E12.17 (LO 5) (Accounting for R&D Costs) Martinez Company incurred the following costs during 2022 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 $330,000 59,000 Consulting fees paid to outsiders for R&D projects 100,000 Personnel costs of persons involved in R&D projects 128,000 Indirect costs reasonably allocable to R&D projects 50,000 Materials purchased for future R&D projects 34,000 Instructions Compute the amount to be reported as research and development expense by Martinez on its income statement for 2022. Assume equipment is purchased at the beginning of the year and economic viability has not been achieved.

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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