Falling Parachutes Inc. put some work on a new patent to slow down the fall of objects falling from high altitudes. The patent will be used in a product that is not yet sold in the market by the company. The following expenditures were required in the lab where the patent was designed:

Wages of scientists:                                        $100,000

Materials used in testing:                                $50,000

Depreciation on Machines used in the lab:   $20,000

The machines used in the lab were purchased from a vendor for $1,000,000 and will be used in other projects after the patent is complete.

Falling Parachutes should recognize the amount as an R&D expense?

Answer rating: 100% (QA)

Yes Falling Parachutes Inc should recognize the total amount of 150000 100000 50000 as research and ... View the full answer