In accounting for research and experimental expenditures incurred in 2021, all of the following alternatives are available with the exception of a.expense R&E costs in the year paid or incurred. b.expense R&E costs in the year in which a product or process becomes marketable. c.defer and amortize R&E costs as a ratable deduction over a period of 60 months or more. d.capitalize and write off R&E costs only when the research project is abandoned or is worthless.

Answer Research and development expenditure incurred during the year can be expensed in the year of amount has been paid or the relevant cost has been incurred Correct answer is = b expense R&E costs in the year in which a product or process becomes marketable. Explanation: expense R&E costs in the year in which it is incurred but not on product or process becomes marketable. The costs can be differred and amortized over a period of 60 months However if the proposed R&E does not give any value addition it should be write-off fully in that year itself Thank you Please rate if it helpful

Answered: In accounting for research and…

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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In accounting for research and experimental expenditures incurred in 2021, all of the following alternatives are available with the exception of

	a.	expense R&E costs in the year paid or incurred.
	b.	expense R&E costs in the year in which a product or process becomes marketable.
	c.	defer and amortize R&E costs as a ratable deduction over a period of 60 months or more.
	d.	capitalize and write off R&E costs only when the research project is abandoned or is worthless.

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