Cressman Company incurred R&D costs for various projects in 2013 as follows: Materials used for research ...............................................$

Question:

Cressman Company incurred R&D costs for various projects in 2013 as follows:

Materials used for research ...............................................$ 240,000

Materials used for development............................................160,000

Equipment acquired that will have alternative uses in

Future research projects for 4 years ....................................2,000,000

Personnel costs of employees involved in research .....................600,000

Personnel costs of employees involved in development ...............400,000

Consulting fees paid to outsiders for research ............................20,000

Consulting fees paid to outsiders for development ......................80,000

Indirect costs reasonably allocable for research ........................130,000

Indirect costs reasonably allocable for development .....................70,000

Required:

1. What is the amount of Cressman's R&D expenses for 2013 if it uses U.S. GAAP?

2. How would your answer change if Cressman uses IFRS? Assume that the company can demonstrate that the projects are expected to generate future economic benefits.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

Question Posted: