used in manufacturing a product. ofessional fees paid to consultants to conduct market study-----P 250,000 es paid to engineers and experts for initial research-- 150,000 st of equipment used for research. The equipment will be used for other research eful life of the equipment is 5 years----P300,000 gal fees to obtain patent---P100,000 censing fees paid to the patent office --P 25,000 gal costs paid to defend patent against infringement suit --P 47,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Smart Company incurred the following costs in 2021, in relation to developing a machine that will
be used in manufacturing a product.
Professional fees paid to consultants to conduct market study-----P 250,000
Fees paid to engineers and experts for initial research-- 150,000
Cost of equipment used for research. The equipment will be used for other research projects. The
useful life of the equipment is 5 years----P300,000
Legal fees to obtain patent---P100,000
Licensing fees paid to the patent office --P 25,000
Legal costs paid to defend patent against infringement suit --P 47,000
How much is the total R&D expense?
Transcribed Image Text:Smart Company incurred the following costs in 2021, in relation to developing a machine that will be used in manufacturing a product. Professional fees paid to consultants to conduct market study-----P 250,000 Fees paid to engineers and experts for initial research-- 150,000 Cost of equipment used for research. The equipment will be used for other research projects. The useful life of the equipment is 5 years----P300,000 Legal fees to obtain patent---P100,000 Licensing fees paid to the patent office --P 25,000 Legal costs paid to defend patent against infringement suit --P 47,000 How much is the total R&D expense?
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