R and D activities.    1,500,000 Cost of market research study.       1,000,000 Current period depreciation on a machine used in R and D activities     500,000 Salary of R and D director.       1,200,000 Salary of Vice-President who spends 1⁄4 of his time overseeing

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. Rattles Co. provided the following information relevant to the research and development expenditures for the year 2022:

Current period depreciation on the building housing R and D activities.    1,500,000

Cost of market research study.       1,000,000
Current period depreciation on a machine used in R and D activities     500,000

Salary of R and D director.       1,200,000

Salary of Vice-President who spends 1⁄4 of his time overseeing R and D activities.   2,400,000

Pension costs for salary of R and D director.    50,000
Pension costs for salary of Vice-President      100,000

 

The R and D expense for the current period should be

A. 3,875,000

B. 5,750,000

C. 4,875,000

D. 3,800,000

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