Virtual Co. incurred research and development costs in 2023 as follows: Materials used in research and development projects Equipment acquired that will have alternate future uses in future research and development projects Depreciation for 2023 on above equipment Personnel costs of persons involved in research and development projects Consulting fees paid to outsiders for research and development projects Indirect costs reasonably allocable to research and development projects $ 450,000 3,000,000 300,000 750,000 300,000 225,000 Total $5,025,000 Assume economic viability has not been achieved. What amount of research and development costs should be charged to Virtual's 20 income statement? $

Virtual Co. incurred research and development costs in 2023 as follows: Materials used in research and development projects Equipment acquired that will have alternate future uses in future research and development projects Depreciation for 2023 on above equipment Personnel costs of persons involved in research and development projects Consulting fees paid to outsiders for research and development projects Indirect costs reasonably allocable to research and development projects $ 450,000 3,000,000 300,000 750,000 300,000 225,000 Total $5,025,000 Assume economic viability has not been achieved. What amount of research and development costs should be charged to Virtual's 20 income statement? $

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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b
Consider the following information from a company's records for 2020: Materials used in research and development projects $4,500 Equipment acquired that will have alternative future uses in future R&D projects for five years 1,500 Personnel costs of employees involved in R&D projects 5,500 Consulting fees paid to outsiders for R&D projects 2,800 Indirect costs reasonably allocable to R&D projects 250 Legal fees associated with registration of a patent resulting from a 2020 R&D project 2,500 Required:Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income. $ _______
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