Problem 20-4 (ATCPA Adapted) Koral Company incurred the following costs during the current year: Modification to the formulation of a chemical product Trouble shooting in connection with breakdowns during commercial production Design of tools, jigs, molds and dies involving new technology Seasonal or other periodic design changes to existing products Laboratory research aimed at discovery of new technology 135,000 150,000 170,000 185,000 215,000 What total amount should be reported as research and development expense for the current year? a 520,000 5. 470,000 e. 385,000 1. 335,000

Problem 20-4 (ATCPA Adapted) Koral Company incurred the following costs during the current year: Modification to the formulation of a chemical product Trouble shooting in connection with breakdowns during commercial production Design of tools, jigs, molds and dies involving new technology Seasonal or other periodic design changes to existing products Laboratory research aimed at discovery of new technology 135,000 150,000 170,000 185,000 215,000 What total amount should be reported as research and development expense for the current year? a 520,000 5. 470,000 e. 385,000 1. 335,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7RE

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Question

Problem 20-4 (AICPA Adapted)
Koral Company incurred the following costs during the
current year:
Modification to the formulation of a chemiçal product
Trouble shooting in connection with breakdowns
during commercial production
Design of tools, jigs, molds and dies involving
new technology
Seasonal or other periodic design changes to
existing products
Laboratory research aimed at discovery
of new technology
135,000
150,000
170,000
185,000
215,000
What total amount should be reported as research and
development expense for the current year?
а. 520,000
b. 470,000
385,000
d. 335,000
C.

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