Sandoval Inc. incurred the following costs during the year ended December 31, 2017: Laboratory research aimed at
Question:
Sandoval Inc. incurred the following costs during the year ended December 31, 2017:
Laboratory research aimed at discovery of new knowledge........................ $240,000
Design of new products involving new technology............................................ 87,000
Testing of new products......................................................................................... 58,000
Construction of research and development facilities..................................... 360,000
Assuming the 6 specific conditions have been demonstrated for development costs, the total amount that is eligible to be capitalized for 2017 is
a) $145,000.
b) $240,000.
c) $327,000.
d) $600,000.
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood