Income statement: Income statement also known as Profit or Loss statement is a financial statement of the companythat represents the revenues and expenses occurred during a particular period. Company’s second quarter income statement states that amount was spent on R&D costs. We need to determine why the second quarter reflects an expense of $ 120000 rather than $ 15000 .

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Chapter 12, Problem 1.1E

To determine

Income statement:

Income statement also known as Profit or Loss statement is a financial statement of the companythat represents the revenues and expenses occurred during a particular period.

Company’s second quarter income statement states that amount was spent on R&D costs. We need to determine why the second quarter reflects an expense of $120000 rather than $15000 .

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