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Muscat Engineering Company incurred the following costs in 2018 related to a new product design: Research for new product design $ 2,415,000 Development of the new product $642,000 Legal and filing fees for a patent for the new design $82,500 Total $3,139,500 The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed, and the new product was patented before the end of the 2018 fiscal year.

Muscat Engineering Company incurred the following costs in 2018 related to a new product design: Research for new product design $ 2,415,000 Development of the new product $642,000 Legal and filing fees for a patent for the new design $82,500 Total $3,139,500 The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed, and the new product was patented before the end of the 2018 fiscal year.

FINANCIAL ACCOUNTING
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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Muscat Engineering Company incurred the following costs in 2018 related to a new product design: Research for new product design $ 2,415,000 Development of the new product $642,000 Legal and filing fees for a patent for the new design $82,500 Total $3,139,500 The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed, and the new product was patented before the end of the 2018 fiscal year.
Transcribed Image Text:Muscat Engineering Company incurred the following costs in 2018 related to a new product design: Research for new product design $ 2,415,000 Development of the new product $642,000 Legal and filing fees for a patent for the new design $82,500 Total $3,139,500 The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed, and the new product was patented before the end of the 2018 fiscal year.
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