Required: Calculate the amount of research and development expenses Delaware must report in its 2018 income statement.
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Question:
Required:
Calculate the amount of research and development expenses Delaware must report in its 2018 income statement.
Delaware Company incurred the following research and development costs during 2018:
Wages and salaries for laboratory research | ps | 430.000 | |
Materials used in R&D projects | 230.000 | ||
Purchase of equipment | 930,000 | ||
Fees paid to third parties for R&D projects | 350.000 | ||
Patent application and legal costs for a developed product | 68,000 | ||
Wages, salaries, and supplies for R&D work performed for another company under contract | 380.000 | ||
Total | ps | 2,388,000 | |
The equipment has a useful life of eight years and will be used for a number of research projects. Depreciation for 2018 is $150,000.
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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