Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 7, Problem 7.4BE
Compute research and development expense (LO7–2)
West Coast Growers incurs the following costs during the year related to the creation of a new disease-resistant tomato plant.
| Salaries for R&D | $540,000 |
| 145,000 | |
| Utilities incurred for the R&D facilities | 7,000 |
| Patent filing and related legal costs | 27,000 |
| Payment to another company for part of the development work | 13,000 |
What amount should West Coast Growers report as research and development (R&D) expense in its income statement?
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