Leon Corporation incurred the following costs in 2021: Acquisition of R&D equipment with a useful life of 4 years in R&D projects P900,000 Cost of making minor modifications to an existing product 140,000 Advertising expense to introduce a new product 700,000 Engineering costs incurred to advance a product to full production stage (economic viability not achieved) 600,000 What amount should Leon record as research & development expense in 2021?
Leon Corporation incurred the following costs in 2021: Acquisition of R&D equipment with a useful life of 4 years in R&D projects P900,000 Cost of making minor modifications to an existing product 140,000 Advertising expense to introduce a new product 700,000 Engineering costs incurred to advance a product to full production stage (economic viability not achieved) 600,000 What amount should Leon record as research & development expense in 2021?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 33P
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Leon Corporation incurred the following costs in 2021:
Acquisition of R&D equipment with a useful life of 4 years in R&D projects P900,000
Cost of making minor modifications to an existing product 140,000
Advertising expense to introduce a new product 700,000
Engineering costs incurred to advance a product to full production stage (economic viability not achieved) 600,000
What amount should Leon record as research & development expense in 2021?
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