Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 11, Problem 11.26E
Research and Development Activities. During the current year, Carlson Industries, Inc. conducted significant research activities related to the development of a new computer chip. Carlson had the following costs:
| Description | Amount |
| Diagnostic equipment (5 year life, $10,000 residual value, S-L method, purchased January 1) | $ 500,000 |
| Salaries of laboratory technicians | 325,000 |
| Testing materials used in experimentation | 137,500 |
| Supplies used in the testing process | 23,500 |
| Salary for engineer in the design phase of production | 87,000 |
| 8,000 | |
| Total cost of research activities | $1,081,000 |
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Chapter 11 Solutions
Intermediate Accounting
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